Earn-out and Exempt approved status: Difference between pages

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imported>Doug Williamson
(Create page - source - Thomson Reuters - https://uk.practicallaw.thomsonreuters.com/9-107-6184?transitionType=Default&contextData=(sc.Default)&firstPage=true)
 
imported>Doug Williamson
m (Tax/Pension check - category added 23/10/13)
 
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''Business sale and purchase.''
''Pensions''.


An earn-out is an arrangement under which all or part of the purchase price on the sale and purchase of a business is calculated by reference to the future performance of the business being purchased.
The status accorded to UK occupational pension schemes by Her Majesty's Revenue & Customs according them favourable treatment with respect to the tax deductibility of contributions and the tax free accumulation of income.
 
Earn-outs are commonly used as a management incentive where owner-managed businesses are sold and the managers continue to work in the business for an agreed period following the sale.




== See also ==
== See also ==
* [[Distribution]]
* [[Approved scheme]]
* [[Earnings]]
* [[Her Majesty’s Revenue & Customs]]
* [[Earnings multiples]]
* [[Practice note]]
* [[Multiples valuation]]
* [[Net profit]]
* [[Owner earnings]]
* [[Performance]]
* [[Price to earnings ratio]]  (PER)


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 10:55, 23 October 2013

Pensions.

The status accorded to UK occupational pension schemes by Her Majesty's Revenue & Customs according them favourable treatment with respect to the tax deductibility of contributions and the tax free accumulation of income.


See also