Frequently asked questions
I have a small UK business that I want to sell. Do I need to have a specialist tax transactions team?
It is important to maximise value on any transaction. Having a specialist team working with you allows you to collate all the information that is usually requested in a diligence process and prepare appropriate responses to prevent unnecessary discussions and potential price reductions.
If any share options are being exercised pre-transaction, or any deferred consideration may be paid, it will be important to ensure that the transaction steps are executed in the right order.
You should obtain tax advice in relation to your personal tax position to ensure that the structure of the sale does not lead to preventable tax issues.
What VAT advice, other than due diligence, can you provide on a transaction?
Our transactions tax team advise on the best strategy for recovery of VAT on transaction costs and future operating costs, and assist with compliance requirements that may arise on the transaction, such as VAT registration, VAT grouping, options to tax, special partial exemption methods and more.
Our Transactions Tax team also input into legal documentation based on knowledge obtained during the due diligence process.
I am raising finance for one UK company; surely I don’t need specialist tax advice as I’m not selling anything?
A valuation will have been undertaken in order to work out how much financing can be supported by the business. This valuation is likely to have some tax assumptions contained within the calculation and these should be reviewed carefully.
A due diligence analysis of your business is likely to be undertaken and it is recommended that you prepare yourself for any potential questions that may arise.
I have a vendor due diligence report provided by the vendors. Do I need to engage a tax transactions team as the tax diligence has been done already?
In this situation we usually recommend a high-level review of the target’s business and vendor due diligence report. This would allow you to test the tax findings in the report and come to your own conclusions on any tax issues in target. This should put you in the best possible negotiation position.