Our colleagues at K3 Tax Advisory believe that tax planning should be driven by your long-term plans and commercial objectives and they understand that tax risk is just one factor in your decision-making process. They can’t predict the future in an uncertain tax environment, but they can advise on how to keep your options open and prepare for changes as they occur.
Passing family-owned businesses and investments to the next generation can create instability, lead to family tensions, and trigger prohibitive tax costs. The K3 Tax Advisory team can structure transactions to move businesses or assets to the next generation, without triggering unnecessary tax costs while protecting asset value and allowing founder family members to realise their value in a tax efficient way.
Splitting a group
Over time corporate groups can accumulate non-complementary trades and investment assets. Commercial drivers such as wishing to sell one trade without the other, needing to extract non-trade assets pre-sale, or sharing an inherited family business between adult siblings require the group to be divided. The K3 Tax Advisory team can advise on splitting up a corporate group between the shareholders using a demerger process that removes the considerable tax costs that otherwise arise.
The best time to structure for a tax-efficient business exit is before any sale is under negotiation. The K3 Tax Advisory team advises on removing tax obstacles to a successful future disposal to give the widest range of sale opportunities in future.
Raising external finance through a collective investment vehicle can accelerate the expansion of a successful investment strategy but is a step change in tax, regulatory and legal complexity. Working with a network of other specialists the K3 Tax Advisory team can develop the best structure for you and your target investors to make sure the commercial and tax profile fits their needs.
Private equity and debt financing structures
The tax treatment of private equity vehicles and debt financing has become much more complex in recent years. The K3 Tax Advisory team can provide expert advice on carried interest, maximising interest deductibility and managing withholding tax leakage in financing and acquisition structures.