Latest news with #CGT
Irish Independent
2 days ago
- Business
- Irish Independent
Succession crisis fears as SMEs are warned they 55pc tax risk if business is sold to management
Entrepreneurs selling to management can be hit with tax bills worth up to 55pc of the sale value, as the Revenue Commissioners can treat this as a dividend for the owner, according to Una Ryan, international tax partner at Grant Thornton Ireland. Sales to private equity or larger trade rivals are charged capital gains tax (CGT) of 33pc, with the potential for further reliefs. The certainty over tax can make this exit route more attractive for owners. Ryan warned confusion and uncertainty over the tax treatment of certain exits could lead to a succession crisis at SMEs, particularly among companies wanting to sell to their management teams. While private equity and large trade sales can mean a chunky payday for SME owners, Ryan said many of her clients were eager to ensure their businesses stayed with management when they retire. 'The management team are invested in the company, they see it as their company and they want what is best for the company in the long-term,' she said. 'A private equity play is, get in, make as much money as possible, and get out. They have a three-to-five-year life-cycle. 'My client portfolio consists of an awful lot of owner-managers and family-owned businesses. Nobody lives forever. Everyone is always looking at retirement or future planning, and how they exit from their company. 'A lot of them see their business as their babies,' she adds. 'So, they want to keep it with a steady ship.' If you buy back an employee's shares, it is treated as a distribution, meaning it is income Grant Thornton Ireland is asking the Government to change how sales to management teams are treated in this year's Budget. The firm is seeking to ensure these exits are CGT events, with certainty provided by legislation to avoid the risk of a huge income tax bill for sellers. Ryan also recommended changes to the tax treatment of employees with shares in SMEs versus those at listed multinationals. 'If employees get shares in owner-managed businesses or family businesses, there is no market for them in the same way as if someone is working in one of the large multinationals. 'So, under first principles in Irish law, if you buy back an employee's shares, it is treated as a distribution, meaning it is income. That is leading to the point again that if that employee is fully exiting and selling their shares, why shouldn't it be treated as a CGT event? 'If there is a similar employee in a listed multinational and they are retiring and they sell their shares, and they are selling it on the market, then they get CGT treatment.'
Business Wire
01-07-2025
- Business
- Business Wire
PHC Announces Exclusive Distribution of MaxCyte® ExPERT™ Platform in Japan
TOKYO--(BUSINESS WIRE)--The Biomedical Division of PHC Corporation (Headquarters: Chiyoda-ku, Tokyo; President: Nobuaki Nakamura; hereafter referred to as "PHCbi"), a subsidiary of PHC Holdings Corporation (Headquarters: Chiyoda-ku, Tokyo, hereafter referred to as "PHCHD") announces it has signed an exclusive agreement with MaxCyte, Inc. to distribute the MaxCyte ExPERT platform (*1) in Japan. In Singapore, SciMed (Asia) Pte Ltd, a subsidiary of PHCHD, separately entered into an exclusive distribution agreement with MaxCyte and launched the ExPERT platform in the country in June. MaxCyte is a leading, cell-engineering focused company providing enabling platform technologies to advance the discovery, development and commercialization of next-generation cell therapeutics. Under this partnership, PHCbi will offer sales and service support for MaxCyte's instruments, consumables, and solutions, providing researchers and manufacturers with access to a clinically proven, non-viral cell engineering platform. MaxCyte's ExPERT instrument portfolio is the next generation of leading, clinically and commercially validated electroporation technology for complex and scalable cell engineering. By enabling high transfection efficiency and cell viability, seamless scalability and enhanced functionality, the ExPERT platform delivers the high-end performance essential to enabling the next wave of biological and cellular therapeutics. PHCbi will distribute and support the full range of MaxCyte platforms covered under this agreement, including the ExPERT ATx®, ExPERT STx®, ExPERT GTx® and ExPERT VLx® as well as related consumables such as processing assemblies and electroporation buffers. These platforms are used by researchers worldwide and have been referenced in more than 70 clinical programs as of Q1 2025. Chikara Takauo, Director of PHC Corporation and General Manager of PHCbi, commented: 'We are pleased to add the MaxCyte's ExPERT instruments to our cell culture technology portfolio. Guided by our vision of 'contributing to the evolution and progress of therapeutic modalities,' we are committed to expanding new solutions that address the challenges of QCD (Quality, Cost, and Delivery) in cell and gene therapy (CGT) manufacturing processes. The addition of MaxCyte's ExPERT portoflio allows us to better support scientists and cell therapy developers by providing them with a powerful, non-viral tool to advance their cell-based research and development processes and ultimately accelerate the adoption of CGT." The addition of MaxCyte's ExPERT platform complements PHCbi's ongoing efforts to further enhance the efficiency of CGT development and manufacturing processes while improving cell quality and safety. PHCbi recently introduced the LiCellMo TM live-cell metabolic analyzer (*2) for research use, incorporating PHC's core In-Line Monitoring technology. In addition, PHCbi is developing the LiCellGrow TM cell expansion system, which is being designed to optimize the cell culture environment by automatically exchanging culture medium based on the metabolic state of cells. Together with the MaxCyte's platform, these solutions reflect PHCbi's commitment to delivering comprehensive support for researchers and developers working in areas such as regenerative medicine, immunotherapy, and bioproduction as well as accelerating cell-based innovation in Japan and Singapore. PHCbi will showcase the ExPERT Platform at the 7th Regenerative Medicine EXPO Tokyo 2025 in Japan, which will be held at Japan's Tokyo Big Sight from July 9 to July 11, 2025. 7th Regenerative Medicine EXPO Tokyo 2025 Dates: July 9 (Wed.) - 11 (Fri.), 2025 Venue: Tokyo Big Sight Japan, West Exhibition Halls (PHCbi Booth No.: W5-30) Official Website: INTERPHEX Week Tokyo / Regenerative Medicine Expo Tokyo About the Biomedical Division of PHC Corporation Established in 1969, PHC Corporation is a Japanese subsidiary of PHC Holdings Corporation (TSE 6523), a global healthcare company that develops, manufactures, sells, and services solutions across diabetes management, healthcare solutions, life sciences and diagnostics. The Biomedical Division supports the life sciences industry helping researchers and healthcare providers in around 110 countries and regions through its PHCbi-branded laboratory and equipment and services including CO 2 incubators and ultra-low temperature freezers. About PHC Holdings Corporation (PHC Group) PHC Holdings Corporation (TSE 6523) is a global healthcare company with a mission of contributing to the health of society through healthcare solutions that have a positive impact and improve the lives of people. Its subsidiaries (referred to collectively as PHC Group) include PHC Corporation, Ascensia Diabetes Care, Epredia, LSI Medience Corporation, Wemex and Mediford. Together, these companies develop, manufacture, sell and service solutions across diabetes management, healthcare solutions, diagnostics and life sciences. PHC Group's consolidated net sales in FY2024 were JPY 361.6 billion with global distribution of products and services in more than 125 countries. About SciMed (Asia) Pte Ltd SciMed (Asia) Pte Ltd, headquartered in Singapore, is an established and leading provider of products and services for biomedical, life sciences, healthcare, drug discovery, pharmaceutical, laboratories, industrial tests, and agricultural markets. SciMed has become the wholly owned subsidiary of PHC Holdings Corporation in 2023, advancing sales and marketing in life sciences business across Southeast Asia, India, and Oceania. About MaxCyte, Inc. At MaxCyte, we are committed to building better cells together. As a leading cell-engineering company, we are driving the discovery, development and commercialization of next-generation cell therapies. Our best-in-class Flow Electroporation™ technology and SeQure DX™ gene editing risk assessment services enable precise, efficient and scalable cell engineering. Supported by expert scientific, technical and regulatory guidance, our platform empowers researchers from around the world to engineer diverse cell types and payloads, accelerating the development of safe and effective treatments for human health. For more than 25 years, we've been advancing cell engineering, shaping the future of medicine. Learn more at and follow us on X and LinkedIn.
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Scotsman
30-06-2025
- Business
- Scotsman
Putting shares into an ISA wrapper
Andrew Sutherland | Ross Johnston/Newsline media Q&A Andrew Sutherland of Acumen responds to a reader, likening them to Mr Buffet Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Q I have shares in six companies which in total cost £15,000 and using dividend reinvestment plans [DRIPS], and are now are valued at £56,000 before brokers fees. Last year I received dividends of £2,087 on which I paid £535 Income Tax. Obviously these shares should be in an ISA wrapper so I would not have to pay tax on the dividends, but would I have to sell them first and pay Capital Gains Tax, then buy a separate Stocks and Shares ISA? Or can they just be put into an ISA wrapper, say over three years, to remain within the annual limit? A Well done! You have followed the strategy of one of the world's greatest investors, Warren Buffett –buy and hold. This is prudent, as is seeking to hold your investments within an have provided total figures so we can look at your portfolio in aggregate, but for specific recommendations or advice, further information would be needed. We can, however, illustrate the mechanics involved with switching the shares into an ISA. Once within an ISA, income from the shares would be free from Income Tax and any future growth would also be the way into the ISA, CGT would apply to any chargeable gains which exceed its annual exempt amount, currently £3,000. This means you could release £4,000 from your portfolio each year tax free. Anything above this would be liable to CGT at 24 per cent as you are a higher rate taxpayer. However, to do so would take a considerable number of years to transfer your portfolio into an ISA, dampening the benefit of the improved tax efficiency. Essentially, the transfer into an ISA is a balance between achieving future tax-free income and paying a degree of CGT in the meantime in order to make the switch more quickly. To achieve this, by releasing about £23,500 you would raise £20,000 for an ISA contribution after CGT has been deducted. By adopting this approach, over three years you would expect to pay a total of nearly £7,700 in CGT and expect to save some £1,070 in income tax over the same period – a total net cost of more than £6, cost would effectively take 13 years to recoup in reduced Income Tax. Tax associated with raising the full ISA allowance annually would be onerous and take a significant period to pay off so the most prudent solution to mitigate for tax will be either somewhere in between raising the full ISA allowance and only raising £4,000 each year, or continuing to bear the ongoing tax burden. Reaching a conclusion would be made much easier in partnership with a qualified financial planner acting as a sounding board. Acumen Financial Planning Ltd is authorised and regulated by the FCA, FRN 218745. The content of this article is the opinion of Andrew Sutherland and does not constitute advice or recommendation
West Australian
29-06-2025
- Business
- West Australian
Nick Bruining: Centrelink rules on gifting and how they can work to get you a bigger age pension
Asset-tested pensioners can use the next 24 hours to boost their pension by up to $60 a fortnight — for life. Under Centrelink's poorly understood gifting rules, the end of the financial year marks a reset point for the annual 'gifting limits'. Only those on an asset-tested part-pension would benefit significantly from the strategy, and only to the point where you receive the full rate of pension. For a single, that full pension amount is currently $1149 a fortnight. For couples, it's $866.10 each, or a combined $1732.20 a fortnight. The gifting or deprivation rules were established to prevent people from deliberately divesting themselves of assets and resources to get more from the social security system. Under the gifting rules, an individual or couple can legitimately reduce their assets by a maximum of $10,000 each financial year, with a maximum of $30,000 over a rolling five-year period. The date of the gift is used to determine two things. Once the gift is made, the five-year clock begins to tick. At the end of those five years, the gift drops off the Centrelink system. That means if you give away $100,000 today, the assets Centrelink uses to determine your entitlements would reduce by $10,000. The remaining $90,000 stays in Centrelink's systems as though you still have it for five years. The $90,000 counts under the asset test and is counted as a financial asset under the deeming system. In essence, you don't lose any pension. You just don't get any more than the permitted amount and, of course, you've lost the use of the asset. On June 30, 2030, however, the $90,000 drops off the system and, if you are an asset-tested pensioner, your pension jumps by up to $270 a fortnight. The second significance of the date is that the annual $10,000 gift limit is per financial year. That means you have a few hours to gift $10,000. If you're an asset-tested pensioner, that alone would see your pension lift by $30 a fortnight for life. In effect, that's like a 7.8 per cent return on your money for life, more than you'll receive as interest in any bank account. And because tomorrow heralds a new financial year, you can repeat the $10,000 gift and see another $30 a fortnight increase. When notifying Centrelink, you'll need to clearly identify the dates the gifts were effected. If you have myGov access to Centrelink services, you can do the first notification today once the gift has been made, and the second tomorrow, on July 1. The $10,000 limit applies to singles and is the combined limit for members of a couple. It doesn't need to go to an individual and can be split up. The easiest way is to gift money. You can gift assets like shares and property, but this will trigger capital gains tax issues because a gift — whether or not you receive anything — is a disposal under the CGT rules. The disposal value is the market value of the asset, and in the case of real-estate or other unlisted assets, independent valuations will be required. Nick Bruining is an independent financial adviser and a member of the Certified Independent Financial Advisers Association
Otago Daily Times
29-06-2025
- Business
- Otago Daily Times
The dollars and sense of introducing capital gains taxation
Tony Fitchett questions the maths on capital gains and property taxes. Gerrard Eckhoff (Opinion ODT 9.6.25), railed against the possible introduction of a capital gains tax "and its numerous close relatives — the land tax, the wealth tax, asset tax, inheritance tax which all hover over those who choose to take a risk to benefit themselves and their families". He claims that advocates of higher taxes ("the Left" and "the tax and spend gallery of the envious") "believe that a CGT is needed to offset what they see to be the original sin of being productive and successful". That description of those arguing for CGT and/or wealth tax is about as accurate as his arithmetic, as in: "land or a building in 50 years' time will be worth a few thousand percent more than its value today ... so a $3 million home will be commonplace". Taking "a few" as three, adding 3000% to the current average house price of $914,000 would make $28.3m, not $3m. New Zealand at present suffers from low tax income, significantly less than comparable OECD countries, and inadequate for funding its essential social services: education, healthcare, housing for the poor, and support of the disabled, sick, and unemployed, not to mention NZ Super, let alone paying for its planned defence spending growth. He seems to regard any form of taxation of capital acquired through business as evil, comparing it to "demanding money with menaces", and asks "why it is so wrong to be able to sell your main asset untaxed after a lifetime of work and retire with some discretionary spending money?". He doesn't show, though, why it is acceptable to tax every dollar earned by those on the minimum wage (or less), who often struggle to buy food, housing, and heating, but not the capital generated by their hard work, and eventually realised, mostly tax-free, by their employers. Most OECD countries have a CGT, as well as steeper progressive income tax rates — Australia (which is attracting many of our young people) doesn't tax the first $18,200 earned, but has a top marginal income tax rate of 45%, plus 2% Medicare levy, on income over $190,000, compared to NZ's 39% on income above $180,000. It has a CGT (allowing for inflation, excluding the family home). Many OECD countries also have inheritance tax, ranging from 4% (Italy) to 80% (Belgium). New Zealand already has a CGT, on rental property resale, though the present government severely reduced its scope. It could be extended to cover most realised capital profit (perhaps exempting owner-occupied homes), but that would take significant time to introduce and to start producing significant tax income. A form of real-property tax, as proposed by economist Susan Edmunds in 2020, which would deem the value of real estate above a personal exemption threshold to be capital invested and earning a notional income, to be taxed at that taxpayer's marginal rate, could be implemented quickly, as property values are regularly measured, and the IRD could easily incorporate the necessary calculations into its systems. An inheritance tax should also be considered, which, as Thomas Picketty has argued, would restrain the inequality explosion New Zealand has suffered over the last 40 years. Mr Eckhoff claims "Few members of the Left have ever owned and run a business, so simply do not understand the implications of extra taxation of small businesses." I was once an owner-operator of a small business and an employer. The most difficult tax problem I had wasn't business-related but personal: managing the provisional tax system with a marginal tax rate of 66% (that dates me) on my personal earnings. Personal-realised CGT, and property and inheritance taxes, aren't taxes on a business. They are taxes on individuals' income and assets, whether earned by daily work or by capital gain. IRD research shows that from 2015 to 2021, while middle-income New Zealanders paid, including GST, an effective tax rate of 20.2% on their personal income, the equivalent for the wealthiest, thanks to realised capital gains and use of trusts, was 9.2%. Is that fair, Mr Eckhoff? • Tony Fitchettis is a retired doctor.
