We are a small London based company of less than 250 employees. 5 years ago we sold 60% of our shares to another UK based company. Having now completed our lock-in period following the sale in 2015 we are free to sell our remaining shares (on an enhanced market value basis) to the Majority Shareholder and we are close to agreeing a Share Purchase Agreement with them. However, if we agree to the sale before the end of the current tax year (2020/21) then we believe we will have to pay the CGT owing by January 2022 - but the deal is that we don't receive the funds for 1 year after the agreed sale date. So that would leave me personally needing to find around £0.5m in CGT payment before receiving any funds. My colleagues / minority shareholders have spoken about taking out a bridging loan to cover the period between the tax payment as would be due and shares payment, but I will not do this as the loan would require a guarantee against my property which I am not prepared to risk. Alternatively they have said we could issue our tax returns and simply not pay the CGT thereby incurring either a penalty or interest on the outstanding tax (which all being well could then be paid around 4 months later in April 2022. Having never paid such a penalty (or interest) myself I feel it is wrong to 'purposefully' avoid paying my taxes. What other options might be available or should I stick to my guns and wait out until the beginning of the next tax year (April 6th 2021) to agree to the deal? The big issue here is my colleagues wanting to agree the deal before the Budget on Wednesday 3/3/21.
Many thanks in advance to anyone who can help me!
Mike
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