Changing of the guard

Category: Professions - Posted On: Sep 18 2018


Have you considered the tax implications when it is time to bring in a new business partner or start a long-awaited retirement?

To prepare for any potential tax consequences, and ease any change, it is important to consider your current business structure whether it be a traditional partnership, an LLP / SLP or a limited company.

Perhaps the most difficult structure to navigate is that of a limited company. The current shareholders might want to protect the value of the company they created, therefore a new class of shares may be needed for any new business partners joining the fold. New Articles of Association would need to be drafted, Special Resolutions to be drawn up and agreed upon by the existing shareholders. However, partnerships also bring their own set of challenges.

The most common hurdle for retirees is extracting the value of their share in the business. Often the business will not have the cash available to simply buy them outright. In this scenario, it is worth discussing with us on how best to structure payments to avoid any unanticipated tax consequences.

To find out more, please contact our dedicated Professions specialists, Mark Gibson on 01592 630055 or Angela Haig on 01307 474274 should you wish to discuss your particular circumstances.