How to limit your tax liability upon the sale of your company
When it comes to the sale of your business, tax can be one of the single biggest costs that a seller can incur. The tax bill on your sale proceeds can often reach 20% and even as high as 45%. Utilising the right specialist advice means that you won’t have to pay more tax than required and prevents your sale from being disrupted by unexpected disputes on the way to completion.
Some accountants lack the specialist knowledge to advise on what are often once-in-a-lifetime business sales. However, specialist advisers have the experience to understand when pre-deal restructuring or changing the structure of a transaction could mean less of your sale proceeds are paid away as tax, and these consultants are available to assist you throughout the transaction. Guidance from the right advisers from the outset can help to protect your sale proceeds and reduce your long-term tax risks.
At KBS Corporate, we work closely with our sister company, K3 Tax Advisory, whose team has decades of experience in delivering expert tax advice on business sales, acquisitions, and restructuring. The team at K3 Tax Advisory understand that no two transactions are identical but recognising common tax factors helps the deal to run smoothly and maximises shareholder value.
There are a number of key tax services that can be tailored to the needs of your business and individual circumstances, including a pre-sale review to identify tax risks and planning opportunities, providing support through the sale due diligence process and working with your existing accountants to present the text profile of your business, and Group reorganisations and asset extraction before a sale, which would include proper planning to minimise any tax costs of restructuring should you retain any part of the business or its assets.
K3TA’s team can also carry out a full review of your legal documents, warranties and indemnities for tax purposes and explain any issues that might be involved to support negotiations. Sales often also require HMRC clearance to guarantee favourable tax rates, and the expertise of the team in dealing with HMRC means that your case can be built clearly and persuasively in order to secure the right outcome.
Finally, the K3TA experts will compile a full report which details how you will be taxed, when the tax will be due, the notifications needed to HMRC and advice on how to disclose the transaction in your tax return.
The service is only chargeable if your sale completes, meaning there is no downside risk, only upside reward. All the cost risk is absorbed by KBS Corporate and K3 Tax Advisory. The service would typically begin with a no obligation review of your business and deal structure, followed by a fixed price quote for the core services that your transaction would require. If your sale doesn’t complete, then there simply is no fee to pay.
A full review of the transaction to determine how you can reduce your tax liability and maximise your return from a sale is offered complementary by the K3TA team and with no obligation. Our team can also provide further restructuring services, including the advice on reinvesting your proceeds or wider changes to your business affairs.
If you are interested in exploring a sale, then please get in touch today to take advantage of the current activity we are seeing from buyers and investors.
Call our team, in confidence, on 0161 258 0118 or email email@example.com.