If you are considering selling all or part of your business it is important to seek tax advice at least a year in advance of a transaction, to ensure that your personal tax profile and that of the business are structured as efficiently as possible. This will help to ensure that your financial returns are maximised and enable you to plan for the future with certainty around your tax position.
Asking the right questions
Asking the business owner these questions helps us to develop an individual tax strategy with the business owner for the exit process and for their future plans:
- Are the right incentives in place within the business for employees to underpin and enhance the shareholder value?
- Has the availability of entrepreneurs’ relief been tested and confirmed? Can others benefit from this relief by simple restructuring?
- Is your business structured in the most efficient way for your intended exit?
- Is the “tax balance sheet” for the business and the family clean and efficient? Are there any actions that should be taken to improve the position?
- Is it possible to obtain advance agreement from HMRC on any aspects of the exit process, to add certainty and reduce risk?
- Do your team of advisers – lawyers, corporate finance advisers, tax and wealth managers – work well together, for you?
- How important is succession/family planning to you and should you be taking action before an exit?
- What are your plans post exit and should you be rearranging your tax affairs now to fully benefit in the future?
- Will you be able to roll-over or defer any of your gains?
- Will all of those exiting from the business be reporting the transaction on a consistent basis to HMRC and with the appropriate level of disclosure?
Our experience of working with leading entrepreneurs and business leaders allows us to develop informed and focussed tax strategies for each family and business, bringing together the right teams from S&W.
Personal tax management
Our tax experts can work seamlessly with our investment managers, financial planners to provide a breadth of service perfectly suited to the needs of an entrepreneur. Selling your business can be a stressful experience, but feeling on top of your financial situation could take some of the pressure off.