San Francisco, California, USA
London, United Kingdom
As a tax adviser there are limited ways you can help your client in connection with a business sale or purchase, advising them on what to sell or buy (assets versus shares or units), advising them on the consequences of the proceeds they receive or provide, and making sure that the contract doesn’t contain any nasty tax surprises.
One of the areas you need to advise on in relation to proceeds is regarding what happens when the sale includes an ‘earnout’.
After waiting 6 years since Government proposed a simplification of the way that earnouts are treated for tax purposes, the new legislation has arrived (and is still before Parliament). After last year’s consultation it is expected that what is before Parliament is the final rules that will apply – and the new rules will apply to transactions that happened on or after 24 April 2015 – there may be an impact on 2015 tax returns that have not yet been lodged.
Our March 2016 complimentary seminar will cover what you need to know to advise on an earnout arrangement. Spots are limited. Register now.