1. Trading company with two trading activities:

• Separate its two trades into different companies.
• With same owners or split between existing owners.

Why?

• Potential sale of one trade.
• Separation/fallout of business partners.

See Case Study 1: Tradeco: demerger of two trades

2. Trading company with an investment property or investment business:

• Separate out activities into separate companies

Why?

• Potential sale of trade or investment business or investment asset
• To preserve Capital Gains Tax (CGT) Entrepreneurs' Relief (ER) or IHT Business Property Relief (BPR).

See Case Study 2: Tradeco: Demerger of its investment business

3. Trading company with investment subsidiary

• Break up the group and create two stand-alone companies

Why?

• Potential sale of trade, trading company or investment business.
• To preserve CGT ER or BPR.

See Case Study 3: Tradeco demerger of investment subsidiary

4. Investment company with trading subsidiary:

• Break up the group and create two stand-alone companies

Why?

• Potential sale of trading company or investment business.
• To preserve CGT ER or BPR.

See Case Study 4: Investco demerger of trading subsidiary

5. Management buyout

• Form new holding company to buy out existing shareholders

For?

• Buyout by existing shareholders or by a combination of existing shareholders and employees 

Why?

• Borrow against assets of new subsidiary
• Share for share exchange for existing shareholders

See Case Study 5: Management buyout: via new holdco

6. Purchase of own shares

• A purchase, by a company of its own shares from a retiring shareholder.

For?

• Buyout retiring or dissenting shareholder 

Why?

• Use company funds to buy shares
• Borrow against company assets to buy shares

See Case Study 6: POS: Buyout retiring shareholder

7. Creating a group

• Adding a new holding company, or
• Creating new subsidiaries

Why?

• To separate new or different activities
• To create a holding company for a share scheme or investment relief
• Asset protection

See Case study 7: Creating a group

7. Stamp Duty: Share for Share exchange

• What relief is there on a share for share exchange?
• What are disqualifying events?
• Examples of cases where relief applies and does not.

See Stamp Duty: Share for Share exchanges