The business vendor may wish to sell the shares rather than the assets, but the purchaser may want an asset purchase to avoid financial antecedents or tax liabilities later.
Strategies to minimise tax on sale or gift include:
- Ensuring at the very least a maximum tax of 10% up to the first £10 million of gain.
- The possibility of a tax free sale.
- Avoidance of double taxation where the company (as opposed to the shareholder makes the disposal.
- If the business is gifted to family to uplift to market value the base cost for later disposal
- Avoidance of double taxation on land and buildings in respect of future appreciation.
- Split of assets where retiring owners keep the land and buildings while the next generation get the business tax free