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Profit Extraction and Succession Planning in OMBs

2 Part Course  |  Considers the many and varied tax issues related to profit extraction and succession planning in OMBs

Profit Extraction and Succession Planning in OMBs Training Course

A one-day course presented in two half-day live webinars

Video Overview

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and meet your trainer.

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  • The trainer, a Chartered Accountant with over 30 years’ experience in tax training, has written on this subject for publications such as Taxation and Tax Insider
  • The course covers a range of business and personal taxes
  • There are many numerical examples and case studies to aid understanding of potential tax exposure
  • Tax traps and planning areas are highlighted throughout, along with relevant cases

This course will make delegates aware of:

  • The advantages and drawbacks of the different ways of extracting profits from private companies, including the impact of
    • National Insurance and dividend tax rises in 2022; and
    • Corporation tax rises in 2023
  • The tax issues and problem areas associated with overdrawn directors’ loan accounts
  • The various tax issues associated with distributions in specie
  • When capital distributions on a striking off or winding up may be taxed as income
  • How the ‘off-payroll working’ rules impact on profit extraction in PSCs
  • The practical problems when share buy-backs are used for profit extraction or succession planning
  • The key CGT and inheritance tax (IHT) issues when passing on shares to family members, in particular
    • Protecting business asset disposal relief
    • Avoiding IHT charges
    • The problems with cash-rich companies
  • The tax issues associated with hive-downs and demergers
  • Clearances and other compliance issues
  • Any relevant changes from the October 2021 Budget and Finance Bill 2022

Part One

Profit extraction

  • Optimum mix of salary/interest/dividends
    • Impact of forthcoming tax rises
  • Use of directors’ loan accounts
  • Removing assets from a company via dividends in specie
  • Alphabet shares
  • Dividend waivers
  • Pension planning
    • Including the impact of the Finance Act 2020 changes to tapering of annual allowance for high earners
  • FA 2016 anti-avoidance on company liquidations
  • Issues for those operating via personal service companies
    • Case study showing the impact of the extension of ‘off-payroll working’ rules to the private sector in April 2021, including impact on profit extraction from company

Part Two

Succession planning

  • Share buy-backs
  • Spreading shares around a family – CGT tips and traps
  • Pre-death planning in family companies
  • Use of trusts of family company shares
  • When Business Property Relief (BPR) is not available to mitigate inheritance tax
  • The particular problems with cash-rich companies
  • Change in ownership of a company – key corporation tax issues
  • Hive-downs
  • Demergers (statutory/liquidation/capital reduction)
  • Case study - Comparison of a buy-out with a share buy-back when passing a company on to children
  • The importance of obtaining ‘clearance’ before undertaking a transaction

The trainer is a Chartered Accountant who qualified with PwC in 1988, spending his last 18 months there in the Corporate Tax department.

In 1989 he joined a leading financial training company as a tax tutor, teaching final level candidates for the ICAEW and ACCA examinations. Since 1992, he has been self-employed as a Professional Tutor and Training Consultant, specialising in tax update courses for accountants, lawyers and investment managers.

He has been teaching in the financial services industry since 1994. Although he concentrates on the professional development market these days, he is very experienced in teaching stock brokers, fund managers and financial advisors for their various regulatory examinations.

As a result, he is a tax specialist with (unusually) a very rounded knowledge of financial services products and markets. In 2012 this led to him undertaking Gapfill courses for the CISI.

He is a regular contributor to Taxation magazine and speaks at regional conferences of the ICAEW and CIOT.

This course will consider the many and varied tax issues related to profit extraction and succession planning in OMBs. It will cover a range of taxes and will include recent changes in legislation, guidance from HMRC and key case law, as well as several numbers-based examples and short case studies. All relevant matters from the October 2021 Budget and Finance Bill 2022 will be covered.

  • The succession aspects of the course were great
  • It was very well presented
  • Excellent and approachable speaker. Good level of detail in the course slides and well explained cases with application to real life scenarios. Extremely useful and interesting course
Number of places:
Part 1

Places Filling – book quickly

Number of places:
Part 2

Places Filling – book quickly


Per participant per part
Discounts available for multiple place booking find out more

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  • Topics expanded or deleted to your bespoke requirements

Have this course pre-recorded

  • Full course recording edited exclusively for your company
  • Files converted to enable housing on your LMS

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