Buying & Selling Assets

Before buying or selling anything, we would advise you check in with your tax advisor to see if there are any issues you should be aware of. Some situations that come to mind include:

Buying and selling shares

• Availability of EIIS on share acquisition
• Availability of reliefs on sale, such as entrepreneur relief and retirement relief, or the participation exemption if a company is selling
• How to correctly structure earn-outs and deferred consideration
• How does it fit into your succession plan and will – long term planning is essential
• Corporate restructuring in advance of sale or purchase – are there assets you want to keep or that will restrict you from claiming tax relief when exiting the business?
• VAT deductibility on associated costs
• Stamp duty if shares are being purchased
• Implications if the shares are in an employer company
• Accelerated vesting of employee share incentives and tax implications for the employer and/or employee

Buying and selling property

• VAT on property – this is the single most important thing to consider as the VAT on property rules have significantly changed in recent times. The VAT position when it comes to property should always be determined in advance
• CGT on sale – tax relief if selling a trading asset
• Gift/inheritance tax (CAT) if full consideration is not received
• Claiming reliefs like principal private residence relief or dwelling house relief
• VAT recovery on renovation costs for both the family home and rented property
• Clawback of tax reliefs such as capital allowances, Section 23 / student accommodation relief
• Stamp duty for buyers
• Claiming capital losses
• CGT exemption if you bought the property in the period from December 2011 to December 2014