What are the UK and generic overseas tax considerations for a UK purchaser acquiring an overseas business?
Produced in partnership with Simon Letherman and Michael Ward of Shearman & Sterling (London) LLP

The following Tax practice note produced in partnership with Simon Letherman and Michael Ward of Shearman & Sterling (London) LLP provides comprehensive and up to date legal information covering:

  • What are the UK and generic overseas tax considerations for a UK purchaser acquiring an overseas business?
  • Overseas and UK tax costs associated with the acquisition of an overseas business
  • Transfer taxes
  • Tax issues on leaving wider fiscal groups
  • Loss of tax assets
  • Value added or sales taxes/custom and excise duties
  • Withholding taxes
  • Multiple levels of taxation
  • Tax-efficient return of profits to UK purchaser
  • Local withholding taxes
  • More...

What are the UK and generic overseas tax considerations for a UK purchaser acquiring an overseas business?

A UK based purchaser of an overseas business will need to consider the following tax issues:

  1. the potential overseas and UK tax costs associated with the acquisition

  2. the tax-efficient return of profits from the overseas business to the UK purchaser

  3. a tax-efficient exit, and

  4. maximising the tax-efficiency of the target business

This Practice Note is written from a UK tax perspective and also comments on some of the typical overseas tax issues that will need to be considered, including tax reporting, filing and compliance obligations. Note that local advice should be sought specifically in the jurisdiction(s) in which the target business is conducted.

Overseas and UK tax costs associated with the acquisition of an overseas business

The usual potential UK and overseas tax costs that need to be considered in connection with the acquisition of an overseas business are set out below.

Transfer taxes

Acquisitions of shares can be subject to local transfer or registration taxes, usually based upon a percentage of the consideration payable for such shares, as well as notary fees.

Technically, if an instrument transferring shares in an overseas entity is executed in the UK, this creates a liability to UK stamp duty on such instrument. However, in practice this issue can be avoided by executing such instrument outside of

Popular documents