|
Valuation and Corporation Tax
 Our corporate tax clients most frequently seek our involvement where open market value impacts upon gains or losses for the purposes of Corporation Tax on capital
gains or in connection with the impairment of goodwill.
A typical situation is the disposal, ex-group, of a subsidiary company or sub-group, or an underlying business, where market value is the determinant of base cost for capital gains purposes, rather than the actual acquisition cost of the
asset and the substantial
shareholding exemption does not apply.
The date of valuation may be a statutory date such as 31 March 1982 or 6 April 1965, or may be some other date arising from an internal reorganisation or cross-border transfer.
Valuation occasions can also arise where the HMRC seek to invoke 'value shifting' or 'depreciatory transactions' provisions in relation to intra-group transfers.
We assist corporate tax departments in these various circumstances either with pre-disposal valuation advice, quantifying exposures for corporate tax planning, or by advising on or handling negotiations with the HMRC's Shares and Assets Valuation
office.
In many cases, pre-disposal valuation advice can assist the corporate tax planning process. Our extensive experience of negotiating values with the HMRC Shares and Assets Valuation
office equips us to best advise on probable valuation outcomes.
Pre-transaction investigation and advice can identify:
- What needs to be valued, and on what date, taking account of any intra-group transfers or
reorganisations
- Whether the disposal of a subsidiary or of the underlying business is
preferable
- Whether the disposal of a sub-group or the underlying subsidiaries is
preferable
- To what extent pre-sale distributions might offer a tax
advantage
- What valuation-critical data or archives need to be secured for future use in value
negotiations
- What exposure tax indemnities might carry in relation to pre-disposal internal
transactions
Please contact us
for more information or to make an enquiry.
|
