Once we have progressed the negotiations, we aim to outline the key heads of agreement between the parties within a Letter of Intent which will cover the key points in the sale including price, and other principal terms and conditions. It will also pick up on other key issues such as employees, debts and creditors, VAT and other tax obligations in the sale. A major consideration is whether the assets are being sold or the shares as this will have a big impact on the seller’s tax liability. In a share sale it is not unusual that the buyer will be seeking reassurances form the seller in the form of warranties and indemnities within the sale agreement.
Maximising the value from the sale of your business, needs to be carefully planned. It could be that the business property is to remain yours, and leased back to the buyer, but needs to be removed from your company as the shares are being sold. An asset sale is very different from a share sale and your personal tax position needs to be taken into account. Other tax issues for your consideration include:
- Income Tax
- Corporation Tax
- Capital Gains Tax
- Inheritance Tax
- Entrepreneurs Relief
There are many other benefits and allowances that might apply to your unique circumstances that need to be considered as you move forward with the sale of your business. For any legal, tax or accountancy advice let us assist in finding the right advisers for you.
For full details call us on 0141 942 7434 or contact us.