Demergers - The Mechanics & Tax Aspects Explored

Introduction

Many family businesses develop to the stage where different shareholders become responsible for different parts of the business. In such cases, the shareholders may decide to partition the company such that each shareholder takes over the relevant part of the business.

It may also be beneficial to separate the trading and investment businesses to take advantage of tax reliefs such as Business Asset Disposal Relief or the Substantial Shareholdings Exemption.

Whilst the separation of a company’s businesses is usually driven by commercial factors, there are special tax provisions available, which can minimise the tax liabilities for both the company and the shareholders which will be explored in this virtual classroom session.

What You Will Learn

This live and interactive course will cover the following:

• Factors resulting in a demerger
• Typical structures
• Statutory demergers
• Non-statutory demergers
• Schemes of reconstruction
• Definitions
• Scheme of reconstruction demerger
• Tax reliefs for shareholders
• Tax reliefs for companies
• Demerger mechanics
• Exempt distribution demergers
• Liquidation demergers
• Reductions of capital demergers
• Stamp duty and stamp duty land tax issues
• Anti-avoidance
• Companies Act requirements
• Clearance applications

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.