Paul Townson and Chris Holmes (BDO) consider some of the common corporate reorganisations and demergers that companies may undertake, and the key risks and issues with each type of transaction.
The FA 2016 changes to the rules on company distributions together with the increased tax on dividends significantly increased the tax cost of withdrawing funds from close companies. However owners still wish to withdraw profits or need to reorganise the ownership structure of their businesses. In this article we consider some of the common corporate reorganisations and demergers that companies may undertake and the key risks and issues with each type of transaction.
Purchase of own shares (or share buyback)
Prior to the Companies Act 2006 companies could only buy back their shares if this was specifically authorised in their articles. They can now do so unless their articles prohibit or restrict...
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Paul Townson and Chris Holmes (BDO) consider some of the common corporate reorganisations and demergers that companies may undertake, and the key risks and issues with each type of transaction.
The FA 2016 changes to the rules on company distributions together with the increased tax on dividends significantly increased the tax cost of withdrawing funds from close companies. However owners still wish to withdraw profits or need to reorganise the ownership structure of their businesses. In this article we consider some of the common corporate reorganisations and demergers that companies may undertake and the key risks and issues with each type of transaction.
Purchase of own shares (or share buyback)
Prior to the Companies Act 2006 companies could only buy back their shares if this was specifically authorised in their articles. They can now do so unless their articles prohibit or restrict...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
