Entrepreneurs Relief

ER with def con - less than 1 year old company

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A client of mine (I'm a business broker) wants to sell his business after trading for only 6 months. He his v keen to complete the sale now, and will take the vast majority of the consideration as deferred. Are the ways to have the deferred consideration covered by ER? Do loan notes from the acquiring company work, or would he have to delay the sale of some of the shares until the company has traded for a year.  Or this another creative way to acheive an ER result? 

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By Tax Dragon
04th Jun 2018 12:55

You are a professional (BOTD). Why is your first thought in a situation like this to join a forum and ask random strangers for free advice that you don't have the skills to check? Why not use a fellow professional and do the job properly?

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By gbuckell
05th Jun 2018 10:58

There are possible solutions but whether any are viable would depend very much on the specific circumstances and requirements of the vendor and purchaser.

As suggested, proper professional advice knowing all the facts is highly recommended.

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