What the transaction costs.
WHY IT MATTERS
Tax treatment can change the net proceeds substantially.
WHAT MAY APPLY
Capital gains tax on disposal of shares or assets Income tax, depending on the structure Stamp duty on instruments Value added tax, on some asset transfers
WHY THE STRUCTURE MATTERS
Share sales and asset sales are treated differently.
WHAT TO ESTABLISH BEFORE AGREEING STRUCTURE
The tax consequences of each.
WHY BEFORE
The structure is difficult to change once agreed.
WHAT TO ESTABLISH ABOUT TIMING
Whether the timing of the transaction affects the treatment.
WHAT TO ESTABLISH ABOUT DEFERRED PAYMENTS
When tax falls due relative to when you are paid.
WHY THAT MATTERS
Tax due before payment received creates a cash problem.
WHAT TO ESTABLISH ABOUT RELIEFS
Whether any apply to your situation.
WHAT TO KEEP
Records supporting the cost of what you are disposing of.
WHY
Gains are calculated against it.
WHAT THAT MEANS PRACTICALLY
Records of what was invested, going back to the beginning.
WHAT TO ESTABLISH ON CLOSURE RATHER THAN SALE
Treatment of assets realised Final period filings Whether losses have any value
WHAT TO ARRANGE
Advice from an accountant, before the transaction is agreed.
WHY BEFORE
Advice afterwards can only describe what you have already committed to.
WHAT TO BUDGET
Professional fees, which are a necessary cost of the transaction.
