CPDStore Ireland

John Murphy reviews the most common corporate restructurings we see during this webinar.

The creation of a group structure has significant advantages. It allows shareholders to protect any excess cash or non-trading type assets in the parent company such that if things go bad in the subsidiary, then the assets in the parent company are not at risk.

In certain instances, a shareholder may wish to sell their company on, in order to increase the attractiveness for a potential purchaser it may make sense to transfer out the trade from an existing company to a new company such that the purchaser acquires a new company and only acquires the trade assets or liabilities. The transfer out of a trade may also work well in succession planning scenarios where certain assets in the existing company are not trade assets and as such are assets that a parent/disponer may want to hold onto.

This course reviews the tax reliefs available on the creation of a group structure or actions that can be taken to ensure that a company is more ‘saleable’. It covers:

• The CGT and stamp duty exemptions available on a share for share exchange and what a share for share exchange means. It will discuss the instances where a clawback of any relief may apply.
• The CGT and stamp duty exemptions available on a share for undertaking transaction and what this means. It will also consider what other tax issues needs to be considered when such a transaction is undertaken. It will discuss the instances where a clawback of any relief may apply.
• It will highlight the importance in transfers between groups of getting the sequence right.
• A possible option to create individual holding companies post incorporation where there is value in the company.
• Reclassification of shares to voting and non-voting to allow for a transfer to the next generation while maintaining control.