| Scenario |
Issues to consider |
Schroders Private Bank solutions |
| Accepting a cash offer |
- Management of the cash.
- Provision for the capital gains tax liability.
|
- The Schroders Cash Management Service can provide enhanced rates on bespoke cash accounts from a panel of third party providers. We also run our own treasury and bank accounts.
- The tax liability could be placed in a structured product which provides capital protection and has the potential to provide enhanced upside performance.
|
| Accepting a loan note offer |
- Appropriate construction of loan notes at the outset of the transaction.
- Borrowing against the asset pending the redemption of the loan note once it qualifies for full Business Asset Taper Relief.
|
- Work with either your current advisers or suitable tax advisers on possible structures for the loan notes.
- Facilitate the provision of loan notes by issuing a guarantee to support the loan notes against cash deposits from the acquirer.
- Lend up to 90% of the notional amount of the loan notes (partly dependent on the guarantor). The interest payments may be rolled up over the term of the loan.
|
| Accepting a stock offer |
- Protection against the value of the stock falling.
- Choosing the best time to dispose of the holding.
- Raising liquidity of the security of the stock to diversify my risk.
|
- Schroders would consider a loan against a single line of stock. The interest payments could either be rolled up or met from the dividend income.
- A hedge on all or part of the single line of stock to minimise the impact of a dramatic stock price fall.
|
Important information. You should consult with your own tax advisers for advice on the tax treatment that will apply to your personal circumstances, as Schroders does not provide tax advice. The statements made in this document are based on our understanding of current legislation and practice. The levels, bases of, and reliefs from, taxation may change. Any loan or guarantee proposal is subject to review of the client's particular circumstances and satisfactory collateral.
