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How to increase your value and sell your business Mike Cooper Tax Partner

How to increase your value and sell your business Mike Cooper Tax Partner. Overview of Pre-Sale Tax Planning. Share v Asset Sale . Securing the 10% Tax Rate!. Entrepreneurs’ Relief (ER) reduces the capital gains tax rate down to 10%. The main qualifying conditions are:. All conditions

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How to increase your value and sell your business Mike Cooper Tax Partner

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  1. How to increase your value and sell your business Mike CooperTax Partner

  2. Overview of Pre-Sale Tax Planning

  3. Share v Asset Sale

  4. Securing the 10% Tax Rate! • Entrepreneurs’ Relief (ER) reduces the capital gains tax rate down to 10%. The main qualifying conditions are: All conditions satisfied for ≥12 months 5% shares & voting rights Trading Company Employee or officer 10% TAX RATE • Maximum individual lifetime entitlement to ER of £10 million! • Share options – way around the 5% rule?

  5. Structuring – Property or Investments Shareholders Shareholders Shareholders Shareholders Cheapest to implement Most tax efficient Property ring-fenced against commercial risk Can sell property or trade

  6. R&D Tax Relief – ‘Imagination is your only constraint…’ Internal SoftwareDevelopment Subcontractor Product or service Processes R&D • If you qualify UK companies can either: • reduce CT liabilities; or • generate a cash refund (for loss making SMEs)

  7. Extracting Funds Pre-sale Excessive cash balances? Executive pay/ dividend freezes Share capital Reduction Pension fund contributions Husband/ wife/ adult-children planning Bonuses/dividends

  8. Sale process • Heads of agreement • Split of consideration • Cash • Shares • Loan notes • Tax clearances • Sale and purchase agreement – tax warranties etc. • Due diligence support

  9. Post sale – compliance and planning

  10. Your nearest office Key Contact ChantreyVellacott DFK LLP Russell Square House 10-12 Russell Square London WC1B 5LF Mike Cooper Head of Taxe: mcooper@cvdfk.comm: 07976 709 910 @CVDFK /ChantreyVellacottDFK /CVDFK

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