The situation
Our clients ran a profitable pharmacy business and are looking towards retirement. Money needed to be extracted from the business to fund this but external sale was not an option as they wanted to keep the business in the family.
The son also runs a separate business in the same industry which he was looking to expand and so the decision was made to sell the business to him.
Find out how creating a group structure allowed for succession while funding retirement.
Outcomes
- Business asset disposal relief was claimed so gains were taxed at 10%.
- Tax clearance gained to mitigate income tax liabilities due to their connection.
- The only other tax cost was stamp duty on the acquisition of shares.
