TAX

Transaction Tax

Whether you’re buying or selling a business – every transaction has tax implications. So, if you’re planning a deal, you’ll need to consider the tax position carefully.

If you’re selling a business, do you know if you’ll qualify for Entrepreneurs’ Relief? What will you do with your cash once you’ve got it? Have you thought about your Inheritance Tax exposure and planning?  

If you’re buying a business, do you understand the target’s tax profile? Are you certain there aren’t any hidden or unpaid tax liabilities?  

SELLING YOUR BUSINESS 

Whether it’s to private equity, to trade buyers or management buy-outs (MBOs); our tax team have advised on a huge range of transactions. That means we know exactly how to structure your deal, so you don’t run into any unpleasant surprises. 

 

On top of that, we’ll work with you to consider alternative business structures that could benefit your tax position. We’ll put these to the buyer. And we’ll work alongside your solicitor and corporate finance advisor to protect your value – both at the time of the sale and afterwards. 

Perhaps a buyer doesn’t want to buy certain assets of your business? We’ll advise on how these assets can be extracted before or alongside the sale in a tax-efficient way. 

We’ll make sure you qualify where possible for Entrepreneur’s Relief (a reduced 10% rate of Capital Gains Tax). And we’ll work with you to mitigate any potential Inheritance Tax costs through Business Relief, structure your estate and Will, and protect your wealth for future generations. 

When’s the best time to think about all this? Well, there really is no time like the present. And that’s because you’ll have far more flexibility with planning opportunities if you act in advance of selling your business. Ideally well before the business is put on the market and negotiations commence. 

BUYING A BUSINESS 

So, you’re looking to make acquisitions. But do you know whether the target company has any tax liabilities that could reduce its value? Our tax due diligence services investigate your target’s tax affairs, identifying and measuring any tax exposure. Then, if they’re found, we’ll help you to factor suitable protections into the deal; which could even be a reduction in price. 

 Knowing the seller’s tax position will get you on the front foot in discussions and get the deal structured in the best way for both parties. And that could save you a lot of time, and a lot of money.  

How will your deal be financed? Do you know whether the finance costs will be tax deductible and when? Without experienced advice, this area can get tricky. But we’ll make sure you understand the post-tax cost of finance, well in advance of your transaction. 

Following acquisition, integration of the target business becomes the aim of the game. Often, your group structure can be simplified to help with this. To find out if that’s the case, you’ll be wanting to head over to our Business Structuring section for further details. 

GET AWARD-WINNING TRANSACTION TAX ADVICE 

 Our specialist team have masses of transaction tax experience. Many of the team have a background from the Big 4 or the large mid-tier firms.  

And because we work closely with our in-house, globally influential Corporate Finance team, we buy, sell and reshape businesses every day. We know the process inside out, from the sticking points to the golden opportunities, and this experience helps us fine-tune your transaction approach to achieve your goals. 

But for us, it’s never just about one transaction. We can help with a lot more than tax advice. And that’s why it’s about looking at the bigger picture, building a relationship with you, and finding out how we can help you to reach all your goals. Both now, and in the future. 

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PAUL, JAN 2024

“Excellent service for our first year audit.”

DAVID, JAN 2024

“R&D Claim: The results were better than expected. The additional cash will enable us to increase profitability”

ALAN, JAN 2024

“R&D Claim: The results were not as good as previous years. The additional cash will allow us to further invest in our R&D program.”

STUART, JAN 2024

“Great to have a personal relationship with the whole team. Always willing to help. Sometimes a little slow to respond on some issues (but then again so are we). Audit team are brilliant, bar audits far to long now owing to the amount of sample data we have to provide, which is hard when you have a small team and limited time.”

CLAIRE, JAN 2024

“Great team, and much improved communication and pro-active engagement over the past three months.”

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ROB, DEC 2023

“R&D Claim: Having worked with the R&D team at CP for a few years now, I had a good idea what to expect. As per usual they exceeded our expectations. The additional cash will allow us to invest in our fleet.”

RICHARD, DEC 2023

“Excellent service. Need to ensure pricing is competitive.”

DAVID, OCT 2023

“Good insights provided. Nice team to deal with. Need more consistency of team members and where this is not possible a better handover should be provided to new members. Need strong manager oversight on all audits, in particular where there are complex transactions etc. Improved communication between audit team and finance functions within the business.”

LUCIA, JUN 2023

“Final Packs are taking too long, communication”