Each week we will be sharing a series of tax saving ideas that are relevant to entrepreneurs, family businesses and owner managed businesses. As always,
the key to successful tax planning is to seek advice as early as possible.
Our first tax saving idea is:
1. Optimise your company / group structure
As businesses expand, they often end up with many different activities in one company or with many stand-alone companies established for each separate
activity. Both can lead to tax inefficiencies. A review can be undertaken to establish the most tax efficient structure for the business including
consideration of the shareholders’ ultimate aims. Possibilities may include:
• A group structure with a holding company owning various subsidiaries - this achieves legal separation of the various activities, whilst retaining the
tax benefits afforded by operating within a group of companies.
• Shareholders holding individual companies directly rather than using a holding company. This can sometimes be more tax efficient if an individual company
may be sold.
If you would like more information or would like to discuss your tax affairs in more detail please contact our Tax Partners, Steve Crompton or Lucy Williams,
on the details below: