Tavistock escapes £ 7million tax burden on sale of estate business
Tavistock Investments escaped payment of £ 7million in tax on the sale of Tavistock Wealth.
In a statement to the stock exchange this morning (October 7), the company said the recent divestment of Tavistock Wealth to Titan Wealth had been eligible for a substantial share ownership exemption (SSE).
The SSE includes four exemptions, meaning the transaction is not subject to UK corporation tax.
Tavistock has said that as a result, no tax charge will be charged on the £ 40million she received in cash for the shares. Without SSE, the transaction could have resulted in a tax burden of around £ 7million.
The deal was struck alongside a 10-year strategic partnership between Tavistock Investments and Titan Wealth, which will see Tavistock act as Titan’s retail distribution partner.
The statement added following the closing of the transaction, along with a recent buyback and cancellation of 4.75 percent of the shares issued by the company, the company’s net asset value per share has increased from 2.59 pence. at 8.5 pence between the end of March and the end of August.
Tavistock Wealth has been rebranded as Titan Asset Management, with the £ 40million sale closing at the end of August last year.
In September, Tavistock reported an operating profit of £ 1.23million for the fiscal year ended March 2021, after advancing a ‘long-planned’ group reorganization project thanks to a coronavirus loan of 2 , £ 13million.
The company said it had undergone a £ 1.2million reorganization that is expected to reduce overhead costs by £ 750,000 a year.