Understanding the dos and don’ts of demergers is vital. Demergers are complicated in terms of tax technical input, but done correctly the tax savings should significantly outweigh the costs.
Craig Simpson, Tax partner at Bates Weston explains how HMRC clearances work, and when and why you might need them.
Richard Coombs, tax partner at Bates Weston, uncovers the problems demergers are designed to fix. He explains how problems arise and why trying to resolve them using anything other than a demerger can often lead to significant tax charges.
In the third in our series of company tax planning articles, Cassandra Graham, Senior Tax Manager at Bates Weston looks at the use of merger, demerger and reorganisation as a tax planning tool.