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Commentary

D6.440 Management buyout—other tax considerations

Corporate tax

One consequence of a company sale transaction is that share options held by employees in Target become exercisable; possibly resulting in an income tax liability for the employees1. Corporation tax relief for the company may however be available (See D1.335)2.

The professional costs incurred on the deal itself may not be deductible for corporation tax purposes as they have a capital purpose,

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