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Restructuring Your Company

Company restructures can take many different forms and will often depend on the reason for the restructure.  Arrangements can include:

  1. Purchase of own shares
  2. Statutory demergers
  3. Non statutory demergers
  4. Capital reductions
  5. Establishing holding companies
  6. Management buyout special purpose vehicles,

There are many reasons why shareholders might want to restructure their companies such as (but not limited to):

  1. Restructuring the assets of a business prior to a sale, for example where a vendor wishes to buy a business but not the trading premises.
  2. Splitting two or more distinct business units from each other to enable each of them to be managed more effectively.
  3. The retirement of older shareholders as part of a management buyout.
  4. Separating valuable assets from the trading activities of the company.
  5. Tax efficient succession planning for family companies.

The restructuring of a company requires consideration of a number of taxes including capital gains tax, income tax, VAT, inheritance tax, stamp duty and stamp duty land tax and, if the proper advice is not obtained, significant tax liabilities can arise. In many cases it is possible to secure advance clearances from HM Revenue and Customs to confirm that statutory reliefs from the above taxes are available.  Freestone Jacobs have over thirty years of experience advising owner managed businesses on how to restructure their business and minimise any associated tax liabilities.

For more information please contact us.

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