OMBs training covers two main elements:
Part One - Profit Extraction
- Optimum mix of salary/interest/dividends:
- Impact of recent tax rises
- Use of directors’ loan accounts
- Using capital reductions to create distributable profits
- Removing assets from a company via dividends in specie
- Alphabet shares
- Dividend waivers
- Uses capital reductions to create distributable profits
Part Two - Succession Planning
The second half-day OMBs training course investigates:
- Share buy-backs:
- Case study in the context of succession planning
- Spreading shares around a family – CGT tips and traps
- Pre-death planning in family companies
- Use of trusts of family company shares
- This OMBs training course assesses when Business Property Relief (BPR) is not available to mitigate inheritance tax (IHT)
- The particular IHT problems with cash-rich companies
- Use of 'freezer shares'
- Some key corporation tax issues (e.g. Substantial shareholding Exemption)
- Hive-downs
- Demergers (statutory/liquidation/capital reduction)
- Case study on using a capital reduction demerger to demerge property from a trading company
- Finally, this session investigates the importance of obtaining ‘clearance’ before undertaking a transaction
Case study - OMBs training considers the comparison of a buy-out with a share buy-back when passing a company on to children