The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
In many cases, the decision to sell a company is taken over a long period, during which there is an opportunity for pre-sale tax planning. This may be necessary if a purchaser only wishes to acquire certain assets or companies within a group, or the vendor wishes to retain certain assets or companies. This will be a matter for negotiation between purchaser and vendor.
Depending upon the nature of the transaction, there will be a range of tax matters to consider, not least the amount of any tax liability arising on the profit generated by a disposal. This may include the following:
the sale of a company may have implications for income tax, corporation tax and inheritance tax; maximising potential reliefs is likely to be key
the historic tax position and amount of tax losses of the company being sold (target) may affect the price
the sale of the target will have consequences for the group of companies out of which it is sold
the vendors will be required to give warranties concerning the business and assets of the target (including the tax position) and will need to decide how much of the sale price they are prepared to leave outstanding on deferred terms
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