Divide and Conquer: Demergers Explained

Objectives

There are a range of reasons why clients might want to divide the activities of a company. Most commonly, they might want to retain some activities and sell others, or the shareholders may want to continue in business separately, so they divide the activities into different companies. The tax reliefs for demergers allow this to be done with the minimum of tax cost (often none at all) if it is done right.

This course explains what a demerger is, when it might be right for your client’s business and how to do it.

Key topics

• What is a demerger and why would you do it?
• The main mechanisms
• Tax issues and the reliefs available
• Pre-transaction clearances from HMRC
• Implementation and post-transactional issues

Who should attend?

This session is aimed at all advisors of owner-managed businesses who deal with succession planning and general business and shareholder issues