Dates                                                                  
 
 
22 October 2008
14 January 2009
1 May 2009
21 October 2009

Course Overview

This seminar considers the taxation implications of buying and selling businesses, paying particular attention to the changes that took effect from 1 April 2002.
The viewpoints of the purchasers and vendors are both considered in depth, with the relevant taxes being covered with worked examples.

Course Content

 Advising the Purchasers
Purchase of shares or assets?
The taxation of intangibles
Protection of losses
Changes to the capital gains de-grouping charge since 1 April 2002
Stamp Duty and Stamp Duty Land Tax

 Advising Individual Vendors
Pre-sale planning
Capital v Income distributions, and is a pre-sale dividend still
  effective?
Sale of shares or sale of assets?
Maximising CGT business asset taper
The importance of "trading company" status for business taper
Form of consideration - cash, shares, loan notes and earn-outs
QCBs or Non-QCB loan notes? The impact on taper relief

 Advising Corporate Vendors
Pre-sale planning
Form of consideration - cash, shares, loan notes and earn-outs
Securing the substantial shareholdings exemption
Definition of "trading company" for substantial shareholdings
  exemption

 Inland Revenue Clearances, in particular:
Section 138 TCGA 1992 re capital gains
Section 138A TCGA 1992 re earn-outs
Section 703 ICTA 1988 re tax advantages

 Warranties and Indemnities
Common tax warranties in share purchase agreements
Tax treatment of payments under warranties

 Tax Issues relating to Venture Capital
An overview of the Enterprise Investment Scheme
Qualifying companies and excluded activities
Conditions for the individual investor
Significance of being "connected" with the company
The "Business Angel" rule
Corporate Venturing Scheme relief
Venture Capital Trusts

 Tax Issues regarding MBOs and MBIs
Taxation of employee shares including restricted securities
“Safe harbour” agreement between BVCA and Inland Revenue
Problems with “ratchets”