Due to the public facing nature of the business, listed companies are especially engaged in ensuring that their tax position is accurate and transparent, to prevent the risk of coming under the spotlight for non-compliance.
Audit firms are restricted in the range of services that they can provide to listed audit clients. Where the group is listed on a UK or EU stock exchange such that it is a Public Interest Entity no tax services can be provided by the audit firm. Companies listed on other exchanges (such as AIM and Aquis) may have some tax services provided, subject to ethical and audit independence considerations.
If ethical restrictions allow, our tax team can provide a range of compliance and advisory services to your listed businesses.
IPO tax services
Share incentive plans
Acquisitions & expansions
International businesses
IPO tax services
If you are looking to list a business, we will ensure that all tax risks associated with the business and any transactions associated with the admission are identified and dealt with well in advance. We will work closely with your other advisers to ensure the process is as smooth as possible. Tax planning is no less important if your plans to list are some way off; we will carry out a tax health check as you start to prepare, giving you time to address any matters before the transaction process occurs.
If you are listing your businesses as part of an IPO, you will have further tax issues to consider. For businesses listing on AIM or Aquis with a UK presence, EIS and/or VCT relief can maximise the potential investor pool. We will help you secure Advance Assurance from HMRC and manage the post-investment application process to permit claims for Income Tax relief by investors at the earliest opportunities.
Share incentive plans
Share incentive awards for officers and employees of listed businesses give rise to specific tax issues due to the ability for the shares to be sold on the open market, bringing them within the scope of PAYE in respect of any discount received. Nonetheless, they are a key mechanism to attract and reward valued people. We will advise you on how to ensure your share schemes operate commercially, and ensure you and your employees are aware of the tax and cashflow consequences.
We will advise on a range of share schemes and structures, including the operation of employee share trusts to suit the commercial needs of the business. For qualifying companies listed on AIM or Aquis, the use of the Enterprise Management Incentive Scheme can deliver significant tax benefits.
Acquisitions & expansions
We will carry out a full tax due diligence review of your target company, working alongside the financial and legal due diligence teams to ensure that all relevant tax risks are covered. Often such acquisitions and expansion will include overseas elements. We use the expertise of our PKF global offices to identify country specific tax risks and obligations, including any tax liabilities that may arise from the transaction itself.
Following completion of any due diligence process, we will support you and your legal advisers in negotiating tax warranties and covenants in share purchase or investment agreements, to ensure that tax risks are covered.
International businesses
For groups with operations or planned transactions outside the UK, we are supported by the extensive PKF Global network to provide expert advice locally, and a joined-up solutions that reflect the commercial aims of the UK and overseas business. Recent examples include advising on the acquisition and disposal of mining assets in overseas jurisdictions, a directors’ share plan with participants based in several differing jurisdictions, a reverse takeover by a UK company for several significant non-UK shareholders and VAT planning for cross-border services.
