Sometimes, people who are in business together reach thepoint where they’d like to separate their interests – or in other words,demerge.

They might for example, have contrasting views on thebusiness’s future direction or they might simply want to unlock shareholdervalue, improve efficiency, focus on core activities or reduce debt.

Demergers can also come into play when restructuringcompanies with investment properties. A capital reduction demerger, forinstance, might  be the solution when abuyer wants to sell a business unencumbered by a property investment portfolio.Such demergers are complex and its imperative you seek professional tax adviceto avoid exposure to taxation charges and legal fees.

Undertaking ademerger might sound daunting and complicated – especially from a taxperspective – but it needn’t be. At Jerroms Miller Specialist Tax, we haveextensive experience of dividing companies and groups into two or more parts,taking advantage of all the relevant tax reliefs and obtaining clearance inadvance from HMRC.