Corporate Tax Advice and Exit Planning for Business Owners
Corporate Tax Advice and Exit Planning for Business Owners
Do you want to maximise value, reduce risk and prepare for the future?
Running a successful business is about more than managing day-to-day operations. It is about building long-term value, making informed decisions and planning ahead for when you eventually step away. This is why a clear exit strategy is essential.
By prioritising exit planning, you can protect what you have built, minimize unnecessary tax costs and ensure the transition supports both your financial security and the legacy you want to leave behind.
Corporate Tax Advice: What is it?
Effective corporate tax planning is essential when preparing your business for exit. By optimising your structure, maximising available reliefs and managing tax risk, you can protect value and position your business for a successful sale.
Aston Shaw works closely with our specialist tax partner Vortax, led by Chartered Tax Adviser Chris Lock, to ensure your exit strategy is built on a clear, robust and proactive tax advice.
Exit Planning: Why Start Early?
Even if an exit feels a long way off, early planning is vital. It puts you in control, minimises uncertainty and ensures that when the time comes, the transition reflects what matters most to you.
Exit planning typically covers:
• Business valuation - understanding what your business is worth and taking steps to increase its attractiveness to buyers or successors
• Succession planning - whether passing the company to family, management, or third parties
• Tax planning - maximising reliefs such as Business Asset Disposal Relief and managing Capital Gains Tax (CGT) and Inheritance Tax (IHT)
• Reviewing your business structure - ensuring your company is structured today in a way that supports your future exit objectives, whether that involves a sale, succession or a merger
• Financial and retirement planning - aligning the exit with your personal income and wealth needs
• Legal and shareholder agreements - ensuring the right documentation is in place to avoid disputes
• Operational readiness – ensuring the business is capable of operating smoothly and independently, without reliance on you
• Timing - identifying when market conditions and business performance are best aligned for an exit
Without a clear exit plan, business owners risk value erosion, unexpected tax liabilities and leaving successors with avoidable challenges. However, with the right exit plan, you can safeguard value, ensure a smooth transition and secure your legacy.
Considering a Management Buyout or Employee Ownership Trust
An exit doesn’t always involve a trade sale or passing the business to family members ownership to family.
Two alternatives that are growing in popularity are:
• Management Buyouts (MBOs) - where the existing management team purchases the business. This can be an effective option if you have a strong, experienced management team that understands the business and is motivated to drive it forward. Structuring an MBO requires careful tax and funding planning, particularly where deferred consideration or external investors are involved.
• Employee Ownership Trusts (EOTs) - a government-backed model that enables employees to acquire a controlling interest in the company, often supported by generous tax incentives. For owners, an EOT sale can provide a fair market exit, help preserve the businesses’ culture and reward loyal employees, while also offering a full exemption from Capital Gains Tax on the sale, subject to qualifying conditions.
Both routes require careful forward planning, robust valuations and thoughtful structuring, but they can deliver highly attractive outcomes, especially when preserving business continuity, rewarding employees and achieving favourable tax treatment are key priorities.
How can Vortax help?
Vortax is one of our trusted partners, providing specialised expertise in Corporate Tax and strategic Exit Planning. Their mission is to help you make confident and well-informed decisions, whether you are focused on growing your business, preparing for future success or ensuring a smooth transition when the time comes to step away.
Vortax can help you:
• Protect your business and its value
• Reduce tax exposure on sale or succession
• Review and restructure businesses to support future exit goals
• Advise on exit routes including trade sales, MBOs and EOTs
• Ensure your long-term financial and family objectives are met
Contact Us
If you are interested in finding out more or would like to book a free consultation with Chris to find out how his expertise could benefit you, please email referrals@astonshaw.co.uk. We would be delighted to make the introduction.