Why a company restructure might be right for you
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Safeguard your assets
Being in business has its risks. If you’ve built a strong balance sheet over time, it’s good to separate the trade from the assets. This way, no matter what happens to the trading company in the future, your assets are safeguarded.

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Enter new markets or make acquisitions
You may be thinking of making an acquisition or expanding into new markets. It’s wise to do this either through a separate company within the group or with a completely stand-alone one. If the new business fails, then it doesn’t take with it (or taint the reputation of) your core business that you’ve worked hard to build.

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Be more flexible
Shareholders can sometimes reach a crossroads where they’d like to go on different paths. A reorganisation of the business can achieve this, by carving out parts of the business and creating new opportunities for shareholders to grow without the need to sell or leave.

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Keep your high-performing team together
Investing in your company could be an unattainable dream for most of your employees. Setting up a subsidiary could give them the opportunity they crave and prevent them from looking elsewhere. EMI schemes are also good for this.

Effective tax planning
You can get easily caught out with a number of tax charges on these transactions such as:
- Income tax on the potential gain when dealing in shares
- Capital gains tax liability from the share exchange
- Stamp duty payable on share transactions.
The good news is that with careful planning, and providing certain conditions are met, the above can be avoided. For your complete peace of mind, we can obtain tax clearance from HMRC on the transaction before you undertake it.
Please email us at confidential@djh.co.uk to arrange a private call or meeting.
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