Cash Extraction Strategies for Owner Managers Under a Labour Government

Objectives

This course brings together many topical issues facing owner managers and their companies. These are largely based on actual client projects and therefore delegates will be able to deal with these areas with greater confidence.

Key topics

BONUS V DIVIDENDS

• Dividend tax rates – 2025/26
• Bonus v Dividend calculations for 2025/26

TAX-EFFICIENT INCOME TO FAMILY MEMBERS

• Benefits of spousal dividends
• Arctic Systems – the ‘settlement issue’
• The vital ‘outright gift’ exemption
• Dividend income for children

SUCCESSION PLANNING OPTIONS

• Main choices available to owner-managers

EXIT THROUGH A COMPANY PURCHASE OF OWN SHARES (POS)

• Background
• Key company law requirements
• Distribution treatment for POS
• Capital gains treatment
• Summary of main rules for ‘capital’ POS treatment
• Multiple completion contracts
• Advance tax clearances

SELLING THE COMPANY TO A ‘TRADE’ BUYER

• Important changes to BADR
• Anti-forestalling rules
• BADR – qualifying conditions for share sales
• Trading company/group test for BADR
• Election to obtain BADR on loan note consideration

SELLING SHARES TO AN EMPLOYEE SHARE OWNERSHIP TRUST

• Overview of EOTs
• EOT tax conditions
• Example - Sale of shares to an EOT

Who should attend

• Partners and managers in practice, especially those undertaking advisory roles
• Corporate lawyers
• Owner managers