Tax issues in acquisition, disposal or finance raising

Major transactions can involve a myriad of tax issues.Analysis of those which arise from such transactions is essential if you are to make informed decisions. At RSM we’ll use our significant experience to support you through any transaction.

Transactions require advisers who can provide the responsiveness and flexibility required. Whether you are planning to sell your existing operation, purchase a new business or raise additional finance, we can advise on all aspects, such as:

  • the deal structure, including the implications of using different entity types and the timing;
  • your ability to recover VAT on transaction costs whilst maximising corporation tax relief;
  • employment-related security considerations including share options, whether historical or for incoming management;
  • corporation tax relief for interest charges (particularly shareholder/private equity loan interest) and withholding tax considerations of interest payable;
  • tax due diligence;
  • inputs into tax deed/indemnity, tax warranties and other documentation; and
  • HMRC communications and clearance applications.

We work closely with our corporate finance team, where relevant, for maximum efficiency and effectiveness. We take a commercial and pragmatic approach to due diligence reviews, and are able to perform either a high-level review or a more in-depth assessment as required.

Tax advice should be taken early, both to ensure clearances or other steps are factored into the timetable and to give you the best negotiating position. By neglecting this step you could find yourself locked into an inefficient tax structure. Changing the deal at a late stage can put you in a weak bargaining position - the counterparty may even use this as an opportunity to move the goalposts by, for instance, adjusting the price. 

It is important to maintain good relationships with stakeholders after the transaction. RSM can help as required with specific issues arising from transactions, private equity investment structures and interest flows. Crucially, we understand what areas will be scrutinised at the next stage of the business life-cycle. This means we are able to help to put in place, now, the paperwork and structures to ease the process.

Please get in touch with us at the earliest opportunity to begin exploring your options with a view to achieving maximum tax efficiency.