how to be the breakaway company in the upturn - dermot reilly

8/9/2019 How to Be the Breakaway Company in the Upturn - Dermot Reilly

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Speaker

Dermot ReillyPartner Private Company [email protected]


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PricewaterhouseCoopers

Cashflow

Utilising losses

Maximising deductions

Availing of tax incentives

Falling asset values

Property issues

Preparing for the upturn

Share freezing

Management incentivisation

Owner/Personal

Agenda

The tax dimension

PricewaterhouseCoopers Slide 229 April 2010How to be the breakaway company in the upturn


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Company losses

Tradinglosses 2009

Total incomeplus gains

2008

Trading income2010 et seq

Other incomeplus gains

2009

Offset on value basis

How to be the breakaway company in the upturn

Utilising losses

The tax dimension

Slide 329 April 2010How to be the breakaway company in the upturn


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Maximising deductions

Relief on payments basis (interest, pensions, share payments)

Convert general provisions to specific

Borrowing funds

Interest relief @ 25% (companies)

Refinancing between group companies

Refinancing between spouses


The tax dimension



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Availing of tax incentives

Research and Development

Patents

Accelerated capital allowances for energyefficient equipment


The tax dimension



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Falling asset values - Opportunities

Crystallising losses

Is now the time to gift?

Extracting assets from companies


The tax dimension



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Property issues

Leases

Variation

EscapeValues

Gains/losses

Property extraction

80% tax rate

Refinancing e.g. spouse


The tax dimension



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Share freezing technique

Management incentivisation

Prepare for the upturn - housekeeping


The tax dimension



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Company

Shareholders

(1)

Company

ExistingShareholders

(2)

NewShareholders

A shares B shares

Freeze value of A shares

Future appreciation in B shares

Control retained by A shares


The tax dimension

Share freezing



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Management Incentivisation

Aim secure CGT rate (25%)

Share schemes

Convertible shares F.A. 2008

But,

Convert which shares?

No conversion Hurdle arrangements

Share freezing

Clog on sale


The tax dimension



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Owner/Personal

Balance: personal financial security and futureof business

Pensions

Cash extractionRealisations

Negligible value claims

Business/wealth succession

Family

Wills


The tax dimension



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Maximise tax opportunities

Get house in order

Summary

29 April 2010Slide 12How to be the breakaway company in the upturn

The tax dimension

PricewaterhouseCoopers Slide 1229 April 2010How to be the breakaway company in the upturn


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how to be the breakaway company in the upturn - dermot reilly

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