Tax Saving Idea of the Week
Are you considering an MBO or MBI?
Business owners wishing to cash in on their shares may consider a sale to management (MBO). This can be a simpler process than selling the company to a third party and may be a more tax efficient way to realise value from the business by selling shares at a 10% tax rate (using BADR) rather than continuing to work and paying 40% or more on future earnings. An MBI is where new management are sought to buy into the business for similar reasons.
As always, the key to successful tax planning is to seek advice as early as possible.
If you would like more information or would like to discuss your tax affairs in more detail please don't hesitate to contact our Tax Partners, Steve Crompton or Lucy Williams on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
direct dial: 01942 292543
mobile: 07807 053494