COMPANY DISPOSAL

Many of our clients own and run their own business, so when the time comes for the client to exit from the business it is very much a significant life event for them. Our clients may have already established an exit strategy but there is further preparation needed to ensure they fully maximise the sale’s potential.

The client should involve their team of professional advisers in the early stages of the exit planning process to avoid unexpected problems that can arise later in the course of the deal. Significant tax savings can be achieved and it’s important that clients approach us when they have decided to sell – this can be before a purchaser has been identified.

The tax rates on share disposals can be generous but are complex and need careful consideration. VAT can be a significant cost depending on whether a share or asset sale takes place. Stamp duty costs may require a group reorganisation prior to disposal.

Lancaster Knox can help protect the value that the client has developed in the business by providing strategies that mitigate the Capital Gains tax implications of the client disposing their interest in a company.