Summary of company tax matters following an MBO

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

Introduction

Several new companies may have been incorporated and / or acquired as a result of a management buy-out (MBO). See the Introduction to management buy-outs (MBO) guidance note for more information on the structure of an MBO.

It is important that the directors of the new group are aware of the tax matters which may need to be addressed once the transaction is complete. It is likely that a tax structuring report was issued by the tax advisers involved in the transaction, not only setting out the steps required to implement the structure for the transaction, but also the recommended actions and ongoing tax issues to consider once the MBO has taken place.

A due diligence process will also have been carried out and the tax section of the report issued as part of this exercise should be consulted to ascertain whether any other action was recommended.

More information on the acquisition process itself can be found in the Buying a company ― summary of key issues guidance note.

The members

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