How to increase your value and buy or sell your businessMike Cooper

Tax Partner

cvdfk.com

Overview

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Share v asset Structures ERPlanning points Types of consideration

Employment taxes Warranty & indemnities

Post sale planning Inheritance tax Tax returns Tax efficient investments

Pre-sale

The deal process

Post sale

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Share v Asset Sale

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Single taxation

Share sale

CGT @ 10% - 28%

Double taxation

Asset sale

28% - 47%

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Securing the 10% Tax Rate!

Entrepreneurs’ Relief (ER) reduces the capital gains tax rate down to 10%. The main qualifying conditions are

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10% TAX RATEAll conditions satisfied for >

12 months

Employee or officer

5% shares & voting rights

Trading Company

Maximum individual lifetime entitlement to ER of £10million! Share options – A way around the 5% voting rule

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Structuring – Property or Investments

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Shareholders ShareholdersShareholders

Property TradeProperty AND

Trade

Cheapest to implement

Most tax efficient

Can sell property for minimal taxCan sell trade for 10%

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Sellers Planning

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Extracting surplus funds in advance Use of pensions Claiming reliefs

R&D tax relief

Capital allowances

Share options – Tying in key employees for low tax cost Split of consideration – cash / loan notes / shares Emigration

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Buyers Planning

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Buyers Planning

Financing

Structure Warranties

IHT

Shareholders

Reliefs

Due Dilligence

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Post sale – compliance and planning

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Tax protection/ wealth management

IHT Planning

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Key Contact

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@cvdfk

Mike CooperHead of Tax

+44 (0)7976 709 910 mcooper@cvdfk.com

Your nearest officeChantrey Vellacott DFK LLPRussell Square House10-12 Russell SquareLondonWC1B 5LF

© Matthew Arnold & Baldwin LLP, 2014. All rights reserved.

How to increase your value & buyor sell your business

Emma Cameron presenting on 23 September 2014