Business restructuring is a key stage in the lifecycle of any organisation. These projects are often complex and time-sensitive, with tax considerations playing a central role in shaping outcomes for both the business and its stakeholders.

The tax environment around business restructuring is intricate. Proper planning and detailed due diligence are essential to make the most of available reliefs, streamline the group structure, and reduce exposure to risk.

At Edge Tax, we specialise in helping businesses navigate the restructuring process. Our team works closely with owners, management teams and advisers to deliver commercially effective solutions that also maximise tax efficiency and shareholder value.

Why Restructure?

There are a number of common reasons to undertake a business restructuring exercise:

  • To simplify operations, reduce cost or create economies of scale
  • To isolate risk within specific areas of the business
  • To raise funds or incentivise staff, including through Employee Ownership Trusts
  • To prepare for a business sale or investment by improving flexibility or efficiency
  • To merge or demerge business units
  • To support succession planning
  • To improve financial visibility and accountability
  • Because commercial or personal priorities have changed

Tax Considerations

Restructuring often brings multiple taxes into play — including corporation tax, capital gains, stamp duties, and VAT. The way these interact can create both risk and opportunity. Particular care is needed where:

  • Property or land is involved
  • Parts of the business are being separated or demerged
  • Transactions do not involve cash, requiring tax liabilities to be funded separately

By planning early, you gain clarity, reduce uncertainty, and give time to explore all available reliefs and restructuring routes.

How Edge Tax Can Help

Our team has significant experience advising on business restructuring and reorganisations across a wide range of sectors and scenarios. We provide tailored support in areas such as:

  • Ensuring the restructured business is well positioned for future growth, investment or exit
  • Reviewing and advising on the optimal structure for your business
  • Assessing tax exposure across all relevant areas including shareholder taxation, corporate tax, VAT, inheritance tax, and stamp duties
  • Exploring different restructuring options in line with your commercial and personal objectives
  • Designing step plans to deliver tax-efficient reorganisations, mergers, demergers and sales
  • Advising on share valuations and capital structures
  • Managing HMRC clearance applications
  • Supporting stakeholder communication, including with investors, lenders, employees and co-owners
  • Handling all necessary compliance, reporting and tax elections
  • Supporting the implementation of complex transactions
Company Reorganisation


FAQ – Business Restructuring and Tax Advice

What is business restructuring?

Business restructuring refers to reorganising the legal, financial or operational setup of a company to improve efficiency, reduce risk, support a sale or succession, or achieve better tax outcomes. It may involve mergers, demergers, changes in ownership, or simplifying group structures.

When should I consider restructuring my business?

Restructuring is worth exploring if you’re:
Planning to sell or pass on the business
Managing different risk areas
Looking to raise funds or incentivise staff
Simplifying your group structure
Responding to changed commercial or personal goals
A regular structural review helps ensure your setup remains fit for purpose.

How long does business restructuring

Simpler restructures might complete within 6–8 weeks. More complex plans needing clearances or multiple steps can take several months.

What taxes need to be considered during a restructure?

A range of taxes can apply, depending on the nature of the transaction. These may include:
Corporation tax
Capital gains tax
Stamp duty or stamp duty land tax (SDLT)
VAT
Inheritance tax (in succession planning)
Understanding how these interact is key to avoiding unnecessary tax costs.

Do I need HMRC clearance before restructuring?

Often, yes. Where specific tax reliefs are being claimed, or the structure could be seen as avoidance, HMRC statutory clearance can provide reassurance and prevent challenges later. We regularly prepare and submit clearance applications on behalf of client

How do I remove a company from the register or restore it later?

Companies House has detailed instructions on striking off, dissolving, or restoring a company:
Companies House – Strike Off, Dissolution and Restoration


Get in touch

Simply fill in the form below and a member of our expert team will be in touch to discuss your Inheritance Tax and Estate Planning needs and how Edge Tax can help.

Your name(Required)
This field is for validation purposes and should be left unchanged.

Get our latest tax articles direct to your inbox

Edge Newsletter

Name(Required)
What best describes you?