Tax Aspects Of Buying And Selling Companies

THOROGOOD PROFESSIONAL INSIGHTS A SPECIALLY COMMISSIONED REPORT TAX ASPECTS OF BUYING AND SELLING COMPANIES Martyn Ingles Blank page A Thorogood Report TAX ASPECTS OF BUYING AND SELLING COMPANIES Martyn Ingles Published by Thorogood Other Thorogood Reports: 10-12 Rivington Street London EC2A 3DU. t: 020 7749 4748 Tax Planning Opportunities for Family Businesses in the New Regime f: 020 7729 6110 e: [email protected] w: www.thorogood.ws Christopher Jones © Martyn Ingles 2000 Maximising Value on the Sale of a Business Peter Gray All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form Practical Techniques for Effective Project Investment Appraisal or by any means, electronic, photocopying, recording or otherwise, without the prior permission of the publisher. Ralph Tiffin This Report is sold subject to the Employers Liability and Industrial Diseases condition that it shall not, by way of trade Fred Collins otherwise circulated without the publisher’s Unlocking Shareholder Value Paul Nichols or otherwise, be lent, re-sold, hired out or prior consent in any form of binding or cover other than in which it is published and without a similar condition including this condition being imposed upon Employment Law Aspects of Mergers and Acquisitions Michael Ryley the subsequent purchaser. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can Intellectual Property Protection and Enforcement Lorna Brazell be accepted by the author or publisher. A CIP catalogue record for this Report is available from the British Library. ISBN 1 85418 189 0 Printed in Great Britain by printflow.com Acknowledgement These notes are based on the text of a course originally presented by my colleague Bob Trunchion of MacIntyre Hudson,whom I thank for providing the bulk of the text.I have updated the notes to take account of the significant changes to Capital Gains Tax business asset taper that were introduced in Sections 65 and 66 of the Finance Act 2000. I would also like to thank Nicki Cole for all her hard work. The author Martyn Ingles BSc FCA ATII Martyn qualified as a Chartered Accountant in 1982 and has specialised in taxation ever since.He became an Associate member of the Chartered Institute of Taxation in 1983 whilst working for Arthur Andersen in London. For ten years he worked for The Financial Training Company Ltd, lecturing in taxation and other accounting subjects to students preparing for their accountancy and taxation examinations, as well as CPE and CPD courses. In January 1997 he returned to professional practice joining Horwath Clark Whitehill,where h