Demerging your business
Talk to us about your demerger plans.Â
Navigating the complex tax rules around demergers requires expert insight. Our specialist team at Bates Weston Tax offers high-level tax advice to help you understand your demerger and reconstruction options and the tax implications associated with them.
We start by taking a thorough look at your reasons for considering a demerger. Our first priority is to assess whether a demerger is indeed the best route for your situation, ensuring that any decisions lead to a tax-efficient outcome that aligns with your goals.
Common scenarios where a demerger may be beneficial include:
- Preparing for a sale: Positioning your business to maximise value when the time is right.
- Dividing assets for a company sale: Splitting off non-essential trades or investments for a cleaner sale.
- Resolving shareholder disputes: Allowing shareholder groups with differing visions to pursue separate paths.
- Reorganising family-owned investments: Adjusting the company structure to accommodate family growth and diversification.
- Separating distinct commercial trades: Implementing trade-specific management incentives where needed.
- Protecting tax reliefs: Safeguarding Business Asset Disposal Relief and Business Property Relief, which depend on the trading status of a business.
Whatever your reason for considering a demerger, we encourage you to contact us as early as possible. Planning ahead with our tax experts can significantly impact your final decision and tax outcomes.
Why choose Bates Weston Tax for your demerger?
The Bates Weston Tax team is deeply experienced in demergers and reconstructions, having successfully advised on numerous transactions for privately owned companies and groups with values between £5 million and £100 million. Our approach is clear and practical, focused on providing a solution that meets your unique requirements. We work to a timetable agreed upon at the outset, ensuring that the process is as efficient and seamless as possible.
Founded in 2016 by Craig Simpson and Richard Coombs, Bates Weston Tax was created to address the concerns often raised about larger national firms—namely, high fees and impersonal service. Our goal has always been to offer clients a cost-effective, high-quality alternative, focused on the specific needs of owner-managed businesses.
Our approach has been widely embraced, with Bates Weston Tax now providing advisory services to substantial privately owned companies, wealthy families, and even other accountancy firms that lack in-house tax expertise. In recognition of our expertise, we co-authored Tolley’s Tax Planning for Owner Managed Businesses in 2020, further establishing our position as leaders in the field.
If you’re considering a demerger, let’s discuss your plans. We’re here to ensure you make well-informed decisions with confidence, backed by expert advice tailored to your needs.
Speak to Craig Simpson or Richard Coombs to discuss how we can help.
Here are related articles from Craig and Richard on Demergers.Â
The Dos and Don’ts of Demergers | Bates Weston
Delving into Demergers | Bates Weston
For more details on types of demerger and case studies:
Ready to make a change?
From payroll to tax advice, Bates Weston has got you covered. Contact us to get started.
Demerger to separate assets from a company before sale
Take out the parts a buyer does not want to include in a sale, tax effectively.
Demerger to resolve shareholder dispute
A potential solution when shareholder relationships become counterproductive.
Demerger to separate commercial trades
To add commercial focus or to create sales appeal, but minimise tax charges.
Demerger when outgrowing your family-owned investment company
When holding all your investments together no longer suits your family circumstances.
Demerger to protect Business Asset Disposal Relief and Business Property Relief
Protection of valuable reliefs, dependent on the favourable tax status of your company.
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