Exit Planning is designing and implementing a strategy that will put you in the best possible tax position when you come to leave, sell or retire from your company.
It involves maximising value, minimising exposure to tax and meeting your personal and financial goals. For example, we can provide you with access to structures that allow you to reduce, defer or eliminate capital gains tax.
Exit Planning enables business owners to exit how and when they choose, to protect themselves, their employees and shareholders from tax exposure, and to ensure the continued success of the company.
Selling a company is one of the most complicated transactions in terms of tax and seeking expert advice is vital.
Working closely with corporate finance boutiques, we can facilitate the whole process of selling your business, all the while keeping a close eye on your tax exposure.
As an exiting business owner you have a number of options, which include selling the business assets or selling shares in the company. Doing the latter allows you to avoid ‘double’ capital gains taxation, which would arise on the sale and on the distribution of assets to shareholders.
Recent developments in Entrepreneurs Relief (ER) allow certain business owners and employee holders of Enterprise Management Incentive options to pay capital gains tax at a lower rate. ER may be applied to transactions of up to £10 million and reduces the 28% rate to just 10% for qualifying parties.
Strategic Tax can provide you with access to a number of structures that legally reduce your tax liability. Contact us for a no obligation consultation.