Whether you are an owner-manager or a serial investor in private companies, understanding the tax reliefs available on entry and exit along with equity-based employee schemes that help realise growth objectives, EAG Tax can assist at each stage of the business lifecycle.
Enterprise Investment Scheme
The Enterprise Investment Scheme (EIS) and its younger sibling the Seed Enterprise Investment Scheme (SEIS) provide investors with an upfront Income Tax reducer, a deferral mechanism and a potential Capital Gains Tax exemption on sale. These schemes are designed for start-ups and young companies with growth objectives in need of a cash injection to realise their ambitions.
Both regimes have many conditions to satisfy, and the issuing of shares to the investor is not the end of the obligation to comply with the myriad of rules.
At EAG Tax we can take you through the process from advance assurance, to reviewing and advising on disqualifying events which can taint an investor’s valuable tax benefits.
There are a number of transactions available to private companies which provide solutions to situations faced by company owners. Grouping companies, acquiring a departing shareholder’s interest, demerging interests, structuring to provide protective holding companies: all are recommended to seek clearance through HMRC’s approval process.
At EAG Tax we can talk you through your options, work with you regarding the practicalities and ensure your chosen structure reduces the tax charges that might otherwise apply.
Whether buying or selling a company, the Due Diligence process inevitably focuses on the tax history as part of its wider commercial investigations. This process is designed to flesh out areas of concern and to protect both purchaser and vendor.
At EAG Tax we can assist your accountant and solicitor, adding our tax specialist knowledge to the process.
Managing the various capital taxes associated with private companies can be complex. Examples include corporate exemptions such as the Substantial Shareholding Exemption, the low Capital Gains Tax rate associated with Investors’ Relief, or Inheritance Tax reliefs associated with trading companies. Structuring your business or investment appropriately from the outset is generally more cost effective.
At EAG Tax we can work through your plans with you, providing the most suitable structure or investment.
Just like personal tax returns, preparing the Corporation Tax return is advisable as soon as possible following the year-end. This is where all the pieces of the tax puzzle are brought together, post-tax year-end planning can begin and elections/disclosures are made.
At EAG Tax we work with your accountant to make this process as stress free as possible whilst delivering our specialist tax knowledge, enabling you to make strategic investment decisions for your business.