We are proud to announce that HMT has been recognised as the “Independent Firm of the Year” for the South East at the 2015 British Accountancy Awards organised by Accountancy Age.
The 5th British Accountancy Awards gala evening took place on November 24th 2015 at The Brewery in London, and was attended by over 500 professionals from accountancy practices all over the country.
After our success at the Thames Valley Deals Awards earlier this year, we are delighted and honoured to have been awarded ‘Independent Firm of the Year – South East England’ at the British Accountancy Awards 2015. It is the second successive year that HMT has been a finalist for these highly prestigious industry awards.
The judging panel recognised our commitment to people and clients, together with delivering investment and growth into new service lines in awarding us this hugely prestigious honour amongst a very strong group of 8 finalists which included several previous winners.
Over the last 18 months we have doubled the number of people in our business as well as expanding our head office in Henley, and opening a new office in the City. We have also added 2 new partners to the business this year to our transaction support and debt advisory offering.
Our corporate finance team have advised on over 20 of the year’s most significant transactions in the South of England both advising corporate clients, private equity investors, banks and owner manager entrepreneurs. This year, our corporate finance clients have included amongst many others; PostNL, BOFA, Radio Technology, LDC, Percipient, Maven, RBS, Santander, Leaders, Redeem, whistl, Procam and ILG. Our Audit, Tax and Advisory practice also continues to grow since we established it 2 years ago and now has over 70 clients.
We would like to thank the judging panel for recognising the efforts of all of our people for being part of this success as well as all of our clients for their support and look forward to continuing to deliver market leading entrepreneurial advice and transaction support services for them while continuing to promote the values that have resulted in us being awarded the title of Independent Firm of the year in the South East.
HMT commented,
“For HMT to have won this award in such a strong field of finalists makes the whole team incredibly proud of what we have built up over the last few years, both establishing our position as one of the leading corporate finance advisers across the South whilst also building up substantial service lines in audit, tax and outsourcing.
This year has seen us continue to invest in our office locations by opening up in London, recruiting and developing our talented people as well as adding to our client service offering through our new debt advisory business. Our ambitious entrepreneurial clients recognise us as their trusted adviser, and we thank them for their support in helping us achieve this accolade and look forward to forging new relationships following this endorsement as the best Independent Firm in our region.”
We are proud to announce that HMT has been recognised as the “Independent Firm of the Year” for the South East at the 2015 British Accountancy Awards organised by Accountancy Age.
The 5th British Accountancy Awards gala evening took place on November 24th 2015 at The Brewery in London, and was attended by over 500 professionals from accountancy practices all over the country.
After our success at the Thames Valley Deals Awards earlier this year, we are delighted and honoured to have been awarded ‘Independent Firm of the Year – South East England’ at the British Accountancy Awards 2015. It is the second successive year that HMT has been a finalist for these highly prestigious industry awards.
The judging panel recognised our commitment to people and clients, together with delivering investment and growth into new service lines in awarding us this hugely prestigious honour amongst a very strong group of 8 finalists which included several previous winners.
Over the last 18 months we have doubled the number of people in our business as well as expanding our head office in Henley, and opening a new office in the City. We have also added 2 new partners to the business this year to our transaction support and debt advisory offering.
Our corporate finance team have advised on over 20 of the year’s most significant transactions in the South of England both advising corporate clients, private equity investors, banks and owner manager entrepreneurs. This year, our corporate finance clients have included amongst many others; PostNL, BOFA, Radio Technology, LDC, Percipient, Maven, RBS, Santander, Leaders, Redeem, whistl, Procam and ILG. Our Audit, Tax and Advisory practice also continues to grow since we established it 2 years ago and now has over 70 clients.
We would like to thank the judging panel for recognising the efforts of all of our people for being part of this success as well as all of our clients for their support and look forward to continuing to deliver market leading entrepreneurial advice and transaction support services for them while continuing to promote the values that have resulted in us being awarded the title of Independent Firm of the year in the South East.
HMT commented,
“For HMT to have won this award in such a strong field of finalists makes the whole team incredibly proud of what we have built up over the last few years, both establishing our position as one of the leading corporate finance advisers across the South whilst also building up substantial service lines in audit, tax and outsourcing.
This year has seen us continue to invest in our office locations by opening up in London, recruiting and developing our talented people as well as adding to our client service offering through our new debt advisory business. Our ambitious entrepreneurial clients recognise us as their trusted adviser, and we thank them for their support in helping us achieve this accolade and look forward to forging new relationships following this endorsement as the best Independent Firm in our region.”
Many private company shareholders expect to pay capital gains tax (“CGT”) at 10% with Entrepreneur’s relief on a sale of the company shares. It can be a very unpleasant surprise if they find that they don’t qualify for Entrepreneur’s relief or, potentially worse, have to pay income tax and NIC.
An article published in the July/August edition of The Business Magazine covered events that can lead to a loss of Entrepreneur’s relief. This article looks at three common risk areas that could give an unexpected income tax charge on a sale.
Earn-outs
If the selling shareholders remain employed post-sale, there is a risk that HMRC will consider the earn-out to be disguised employment income assessable under PAYE with NIC, rather than taxable under CGT, with implications for the individual and the employing company.
Red-flags in earn-out clauses include:
earn-outs only being paid to the employed shareholders;
below-market rate salaries;
targets based on personal performance targets; and
the earn-out being dependant on continued employment, “beyond a reasonable requirement to stay to protect the value of the business being sold“.
Preferential share pricing
Disposal proceeds above market value
If an employee/director shareholder receives a higher price per share on a disposal than the other shareholders, which is not justified by the share class having more valuable transferable rights, HMRC may assess the excess payment as an employment reward with income tax and NIC due under PAYE.
Shares acquired at an undervalue
If an employee/director receives shares and pays less than market value, there is an income tax exposure for that individual. Sweet equity deals or ratchets in favour of management need careful review.
HMRC will not give advance share valuations, but a post-transaction valuation can be agreed to give certainty over the employee’s income tax position.
Transactions in Securities rules
These wide-ranging anti-avoidance rules apply to closely held companies (generally controlled by five or fewer shareholders or controlled by the directors).
These rules often present a problem on Newco acquisition structures where there is a partial exit of the major shareholders for cash or loan notes, such that they are retaining a material shareholding going forward.
These rules will tax share sale proceeds as if they were a dividend, subject to income tax, rather than capital proceeds under CGT. As the reports on www.pan-card.org.in explain, the higher rate tax payers, this could mean significantly higher tax rates, particularly if the client expected to pay 10% under Entrepreneur’s relief.
There is a safe-harbour where a shareholder retains less than 25% going forward, but the details of this provision need very careful review.
This can be a deal-breaker and it is crucial that vendor’s expectations are managed and that advance HMRC clearance is considered early in the sale process.
Many private company shareholders expect to pay capital gains tax (“CGT”) at 10% with Entrepreneur’s relief on a sale of the company shares. It can be a very unpleasant surprise if they find that they don’t qualify for Entrepreneur’s relief or, potentially worse, have to pay income tax and NIC.
An article published in the July/August edition of The Business Magazine covered events that can lead to a loss of Entrepreneur’s relief. This article looks at three common risk areas that could give an unexpected income tax charge on a sale.
Earn-outs
If the selling shareholders remain employed post-sale, there is a risk that HMRC will consider the earn-out to be disguised employment income assessable under PAYE with NIC, rather than taxable under CGT, with implications for the individual and the employing company.
Red-flags in earn-out clauses include:
earn-outs only being paid to the employed shareholders;
below-market rate salaries;
targets based on personal performance targets; and
the earn-out being dependant on continued employment, “beyond a reasonable requirement to stay to protect the value of the business being sold“.
Preferential share pricing
Disposal proceeds above market value
If an employee/director shareholder receives a higher price per share on a disposal than the other shareholders, which is not justified by the share class having more valuable transferable rights, HMRC may assess the excess payment as an employment reward with income tax and NIC due under PAYE.
Shares acquired at an undervalue
If an employee/director receives shares and pays less than market value, there is an income tax exposure for that individual. Sweet equity deals or ratchets in favour of management need careful review.
HMRC will not give advance share valuations, but a post-transaction valuation can be agreed to give certainty over the employee’s income tax position.
Transactions in Securities rules
These wide-ranging anti-avoidance rules apply to closely held companies (generally controlled by five or fewer shareholders or controlled by the directors).
These rules often present a problem on Newco acquisition structures where there is a partial exit of the major shareholders for cash or loan notes, such that they are retaining a material shareholding going forward.
These rules will tax share sale proceeds as if they were a dividend, subject to income tax, rather than capital proceeds under CGT. As the reports on www.pan-card.org.in explain, the higher rate tax payers, this could mean significantly higher tax rates, particularly if the client expected to pay 10% under Entrepreneur’s relief.
There is a safe-harbour where a shareholder retains less than 25% going forward, but the details of this provision need very careful review.
This can be a deal-breaker and it is crucial that vendor’s expectations are managed and that advance HMRC clearance is considered early in the sale process.
