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Business Tax  •  Personal tax  •  Probate and Inheritance Tax  •  Tax Planning

Is it possible to have a tax free business exit?

By RJP LLP on 3 July, 2017

Shareholders may believe that they need to secure a sale to a third party to unlock the financial value in their company and, whilst a review of the marketplace is important, when the economic climate is as uncertain as it is currently finding an external buyer and getting the right price and terms can be difficult.

In this situation, many company owners turn to employees to explore the possibility of a management buy-out. If you have a strong management team who are keen to take on the responsibility, there are a number of ways in which a management buy-out can be structured tax effectively for the exiting shareholder(s) and cost effective for management.

This article published in Businesszone explains how to secure a tax free business exit using an Employee Ownership Trust (EOT). In this, tax partner Lesley Stalker looks in detail at EOTs, their tax efficient status and the advantages and disadvantages of using them.

Get in touch if you would like exit strategy advice by emailing partners@rjp.co.uk

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31 July 2020 - Normally an important deadline!

All taxpayers due to make self-assessment tax payments on 31 July 2020 can now delay their payment due to the disruption caused by Coronavirus. This includes self-employed taxpayers and also company directors who pay self-assessment tax on dividend income.

Read more in our coverage of Coronavirus and business support from the Government.