Course Details

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.

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CPD Course Speaker

OmniPro Tax and Legal

John Murphy

As a Director of OmniPro Tax and Legal Limited, John relishes problem-solving to help accountants develop innovative client solutions and sharing his technical knowledge on tax, company law, financial reporting and auditing.

A Chartered Tax Adviser, he advises clients in practice on a range of issues from income tax, tax planning, restructuring to exit planning as well as advising on company law in relation to these and many other matters. In addition, he provides support on financial reporting, auditing and company law; conducts company valuations and advises on pre-sale restructuring. He is also an insolvency practitioner who acts as liquidator in members voluntary liquidations and is a Registered Auditor.