Our advice provides a multi-million pound tax savingConsumer Products
The Digital Recruitment Company was founded with the ambition of being the leading provider of Permanent, Freelance and Executive Search recruitment services into the digital market space. They recruit for digital jobs both in the UK and internationally.
Challenge
The shareholders of our client company were delighted to receive a significant offer for part of their business. But the initial excitement was somewhat dimmed by the prospect of corporation tax at 25%, and personal income tax at around 50%. Since the acquiring company only wished to purchase part of the operation, and not the whole, it appeared impossible to sell the company’s shares in a tax efficient manner.
Solution
The shareholders were in danger of missing out on entrepreneurial relief. With that in mind, we designed a restructure of the company, allowing the purchaser to acquire the shares of a new trading company and its assets.
Result
As a consequence, all of the shareholders received the benefit of entrepreneurial relief, paying tax at the rate of 10%, on what was a very significant capital gain. The overall tax saving amounted to several million pounds.
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I have always found the service to be accurate, informative and extremely efficient. Samuel and his team have ensured all of our returns are made accurately and on time.
