Tax planning steps for company sale

KEY POINTS

• A small business is taken over with several elements to the consideration.
• Cash proceeds will result in an immediate chargeable gain.
• Under the share-for-share exchange rules the new assets have the cost of the old.
• Receipt of qualifying corporate bonds can result in a gain being deferred.
• The share-for-share exchange rules can be disapplied to benefit from entrepreneurs’ relief

I had been so looking forward to Friday a ‘work from home day’ which I had set aside to plan the capital gains tax course I was teaching the next week. I put the kettle on dropped the teabag into my mug and annoyingly found that I had run out of milk. So I popped down the road to my local grocer.

I...