Team secures tax-efficient sale of property group

Background

Rysa Lodge is a substantial, Norfolk-based residential property holding group, which was originally established in the 1990s under the now-defunct Business Expansion Scheme.

The group had achieved significant growth and profitability, acquiring various substantial property interests. One of the founder shareholders of the group was looking to buy the business, and the company approached the team at FRP to advise on the most tax-efficient transaction – both for the vendor shareholders and the buyer – and the most effective structure for the group moving forwards.

Action

Our Corporate Finance team was able to provide detailed tax advice for all parties, including facilitating a tax-efficient exit for a substantial number of vendor shareholders. The team advised on the purchasing structure to maximise the tax efficiency of the new group, achieving tax deferral for the continuing shareholders while ensuring the group was structured to meet future inheritance tax objectives.

They dealt directly with HMRC to obtain all the necessary tax clearances and review all legal documentation to ensure those tax objectives were fully met.

Outcome

The sale of the business was successfully completed, delivering the optimum structure for the selling shareholders, while ensuring that the group’s future operating platform secured the necessary commercial and succession planning objectives for the purchaser.