The benefits of creating a clean company
If you are looking to sell your property development or construction business you should be aware that there are potentially extensive taxation and legal due diligence issues to be considered.
James Greenhalgh, Tax Director at Cowgills’ Property and Construction Sector briefly explains.
Buyers of either a property development or construction business are understandably nervous about issues surrounding potential historic or ‘legacy’ issues such as CIS or VAT compliance failures.
This can lead to buyers requiring extensive warranties and indemnities in the sale agreement which in turn can cause delays to the deal and enhanced legal charges for all parties.
The ‘clean company’ structure is a solution and it is particularly attractive due to an expansion of the relief in the last budget to bring businesses commenced since April 2002 into the scope of the relief.
Whether you are a newly incorporated company, free from any historic legacy issues be they tax or commercial (for example at risk of being sued by a former customer) or you are a prospective purchaser, James can provide the best advice.
Most importantly, if you are selling your property development or construction business, in certain corporate group scenarios there may be potential to sell your business free from corporation tax.
The information was correct at time of publishing but may now be out of date.