Achieving a tax effective result on the sale of your business isn't simply a result of signing a sale contract. Different strategies may need to be employed depending upon the operating structure in place, the identity of the owners, and the underlying tax profile of the operating business. A more tax effective exit may be achieved through de-merging part of a business prior to sale, by undertaking a share buy-back instead of a sale, or by entering the consolidations regime to enable assets to be transferred. This paper explores the planning opportunities available to put you in the best position to achieve a tax effective exit. Matters covered include:
- undertaking a de-merger
- using a share buyback
- returning capital
- restructuring shareholdings
- entering the consolidations regime
- other planning strategies.