This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax & Legal advice on demergers and reorganisations of Private Limited Company

royed31
Posts:3
Joined:Mon Feb 22, 2021 3:15 pm
Tax & Legal advice on demergers and reorganisations of Private Limited Company

Postby royed31 » Mon Apr 18, 2022 2:09 pm

Hi

Tax & Legal advice on demergers and reorganisations of Private Limited Company

We have a small family business with 4 shareholders , my mother as the major shareholder and my 2 sisters and myself as equal shareholders

It is an Limited Investment Company with a Portfolio of Shares and Funds managed by Canaccord and the accounts are done by a small firm of accountants

We want to look at the best way to split the company between the three of us with my mother retaining some herself for income. Or, perhaps having 3 companies with my mother having an interest in each........advice required but part of the reason of doing this now is inheritance planning

With Tax being a central factor in how the reorganisation is structured consideration needs to be given to tax planning to reduce the risk of significant tax liabilities to the business(s) and its shareholders.

Our main goal is to reorganise the business and spilt the assets on a tax neutral basis whilst at the same time not triggering any tax liabilities for shareholders
I believe there maybe tax reliefs available for the participants that can be take advantage of but this depends on the route chosen for the demerger / reorganisation

I hope this gives an outline what we are looking to do and I am looking for pointers required to ensure compliance and avoiding any unnecessary pitfalls that I should be aware of ar an early stage

Look forward to hearing from those who may have done similar

Cheers

Roy

Return to “Business Tax”