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Background

Our client ‘Bricks and Mortar’ is a construction business with a plant hire arm and which also owned farm assets.  As the two Directors approached retirement age, they came to GWA for advice about how to divide their business so that each director could assume control of the specific areas of their business that they predominantly managed.

How GWA helped

GWA acted as a consultant and facilitated a statutory de-merger; splitting the company into three new entities with both directors retaining an interest in the construction business, one of them becoming sole owner of the plant hire business and the other taking ownership of the farm assets.

We achieved this with minimal tax leakage by obtaining HMRC clearance to complete an “exempt distribution”, meaning no tax was payable on splitting the original company.

We respect the privacy of everyone who comes to GWA for advice. So while this case study is true, we have changed client names to maintain business and financial confidentiality.
This information should be taken as general guidance only. Before making any decision or taking any action, you should seek professional advice.

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