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Mergers & Acquisitions – Make the Most of Tax Opportunities
There has been an increasing number of transactions that involve the acquisition of target companies that cannot repay their borrowings. Taxand UK highlights the latest taxation developments in this area such as methods using Corporate Rescue Exemption and debt for equity swaps to avoid a tax charge when acquiring a target company. It also looks at the effect of the change in the Capital Gains Tax (CGT) rate and Entrepreneurial Relief and the positive effects it may have when considering structuring transaction.
Going forward, detailed consideration should be given when acquiring companies with debt and, subject to certain requirements being met; these methods can be beneficial financially.
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