Tax Issues Affecting MBOs Course Overview:
This Tax Issues Affecting MBOs course is intended to give those involved in MBO transactions an understanding of the taxation traps and planning opportunities that the tax legislation produces.
The course will look at issues for the target business, those providing funding and, in particular, the management team. The potential charges under the employment-related securities legislation are particularly important for the latter.
As well as explaining the tax rules, importance compliance aspects, such as obtaining (where possible) HMRC clearance in advance of the transaction, will be discussed.
This course can be presented in-house via live webinar.
Background of the Trainer:
Our 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.
Our trainer 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.
Tax Issues Affecting MBOs Course Content:
Tax issues affecting the target business
- Acquisition of trade and assets or shares in target?
- Possible tax charges if target company acquired
- Preserving trading losses
- Problems caused by anti-avoidance rules
Taxation of Venture Capitalist/ Private Equity Funding
- Tax treatment of debt and equity
- Problems with “stranded interest”
- Taxation of share buy-backs
- Taxation of share sales
The tax treatment of managers’ shares
- Interest on money borrowed to buy shares
- Capital gains treatment on eventual sale
- Availability of relief under Enterprise Investment Scheme and Seed EIS
- Potential income tax charges under employment-related securities legislation
- Complying with the conditions in the memorandum of understanding between BVCA and Inland Revenue
- Structuring ratchets to avoid income tax charges on the manager shares
Using EMI options to recruit, retain and incentivise key staff
- Qualifying companies
- Conditions to be satisfied by employees
- Exercise conditions, forfeiture, restrictions
- Disqualifying events