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Statutory Demerger
The Problem:
Two shareholders had been involved in running a successful entertainment group for a number of years and wished to go their separate ways, splitting the value of the business equally between them. The top priority was to minimise any tax payable and to avoid disruption to the business.
The Solution:
A statutory demerger was the proposed solution. Obtaining revenue clearance allowed a division of assets and the writing off of inter-company loans with favourable tax treatment. This addressed both parties issues and allowed a smooth transition to running the operation as two distinct businesses.
The Outcome:
Both parties were able to retain the assets they wanted from the group and there was no interruption to the trade of any part of the business.