Where shareholders in limited companies wish to realise some of all of the value they have built up within their business, there are alternatives to outright sale.

Certain specialist funders will now provide what are commonly referred to as 'cash-out' funds. These are funds which are lent to the business on commercial banking terms with the clear objective of realising some cash for the business owners. Our Corporate Finance team is very experienced in raising these types of funds both from locally based clearing banks and from a number of specialist lenders further afield.

But what about tax? Although the headline tax rate on the disposal of shares in limited companies is often 10%, achieving an attractive tax rate on 'cash-out' deals is more challenging. This can be achieved if certain quite specific criteria can be met and we can work with clients to help maximise this position once appropriate funding has been agreed.

If you would like to discuss this further please contact Mark Sheen or Nick Hulme.

13/12/2005