A freeview index
Management Buyout: What are your options?
What are the most straightforward options to facilitate a retirement by the businesses' owners and the management of the company to take over or buyout? For example, what happens when two current directors/shareholders wish to retire and sell to a manager?
Loan to participator: uncertainty for some MBOs
- The scope of s.455 CTA 2010, a Close company Loan to participator charge is extended by s.459 CTA 2010 to include arrangements where:
- A close company makes a loan or advance which does not otherwise give rise to any charge under s.455, and
- A person other than the close company makes a payment or transfers property to, or releases or satisfies (wholly or partly) a liability of an individual who is a participator or an associate of a participator.
- The charge aims to prevent tax avoidance schemes where loans are used to extract profits from companies without paying appropriate taxes.
- There are concerns where a loan arises in a Management Buy Out (MBO)
See Loans To Particicipators MBO loans
Close company loans toolkit (loans to participators)
What is the Corporation Tax treatment when a close company makes a loan to a participator (director-shareholder)? How do the 'bed and breakfasting' rules work?
Close companies: Definitions & control
What is a Close company? What are the tax consequences? What is a Participator? What is meant by Control of company? What are the tests for Control? What are the issues with an 'upstream loan' is made to fund a Management Buy Out (MBO).
Directors' loan accounts: Toolkit (Freeview)
At a glance: HM Revenue & Customs (HMRC) provide a Director's loan toolkit for advisers. This is our own version with planning points.
Directors' loan accounts: Toolkit (subscribers)
HM Revenue & Customs (HMRC) have a director's loan accounts toolkit for advisers. This is our enhanced version with planning points.
