Dental Tribune United Kingdom Edition

23Money MattersFebruary 6-12, 2012United Kingdom Edition Ems-swissqualitY.com For more information> www.ems-swissquality.com savE cEllsNEw Ems swiss iNstrumENts surgErY – saviNg tissuE with NEw iNNovatioNs iN implaNt dENtistrY The inventor of the Original Piezon Method has won another battle against the destruction of tissue when dental implants are performed. The magic word is dual cooling – instrument cooling from the inside and outside together with simultane- ous debris evacuation and efficient surgical preparations in the maxilla. cooliNg hEals A unique spiral design and internal irrigation prevent the instrument’s temperature from rising during the surgical procedure. These features combine effectively to promote excel- lent regeneration of the bone tissue. EMS Swiss Instruments Surgery MB4, MB5 and MB6 are diamond- coated cylindrical instruments for secondary surgical preparation (MB4, MB5) and final osteotomy (MB6). A spiral design combined with innovative dual cooling makes these instruments unique in implant dentistry. coNtrol savEs Effective instrument control fosters atraumatic implant preparation and minimizes any potential damage to the bone tissue. prEcisioN rEassurEs Selective cutting represents virtually no risk of damage to soft tissue (membranes, nerves, blood vessels, etc.). An optimum view of the operative site and minimal bleeding thanks to cavitation (hemostatic effect!) further enhance efficacy. The new EMS Swiss Instruments Surgery stand for unequaled Swiss precision and innovation for the benefit of dental practitioners and patients alike – the very philosophy embraced by EMS. > EMS Swiss Instrument Surgery MB6 with unique spiral design and internal instrument irrigation for ultralow temperature at the operative site are free of tax. Company selling the assets Purchasers prefer this route as they can obtain tax relief on assets purchased as well as Goodwill if purchased through a company. As the vendor you have the second step of extracting the sale proceeds from the com- pany, potentially facing a dou- ble tax charge. • Your company will have a corporation tax charge on any uplift in the value of Goodwill since your incorporation. • Initially any monies will be used to pay off the residue of any director’s loans, again no tax. Then you have choices: 1Dissolve the company and take the reserves out as capital with an effective rate of 10%. WARNING – after 1st March 2012 a formal liquida- tion will be required. Or; 2Retain the company and take dividend income with the possibility of avoiding any in- come tax where total income can be kept within the basic rate band. May take a number of years to fully extract. Al- though; 3The monies remaining in the company could be used for investment purposes. Perhaps buy-to-let properties, another business etc. For practices with multi- ple shareholders looking at succession/retirement this becomes more complex but there are additional opportu- nities to explore. • The company itself may be able to purchase some or all of the shares from the retiring shareholder. As long as the shares have been issued for at least five years then this would be treated as a capital pay- ment and will attract Entre- preneur’s Relief. This avoids existing shareholders from having to use their own tax paid wealth to buy the shares. • The retiring shareholder may remain as a capital pro- vider, charging interest on their outstanding loans. Secu- rity would be required but this may well present an attrac- tive proposition for both the company, in terms of cheaper rates than the bank, and the individual who may benefit from a better rate of return than is elsewhere available. Inheritance tax (IHT) The shares you hold in your trading dental company qualify for full Business Property Relief (BPR) so there is no Inherit- ance tax liability. It is, however, worth noting that Director’s loan accounts do not attract BPR. After you sell, the cash you receive for your shares has no such relief so an IHT review is recommended. If you sell your shares in a dental trading company that you controlled (owned more than 50 per cent) but retain an interest in the trading property then you will lose the 50 per cent BPR that you had on that property. This is a complex area where many taxes are involved and timings can be critical. Timely advice that can influence the structure of a sale will prove in- valuable. Be sure you get that advice. DT About the author Jeff Williamson is an experienced chartered ac- countant and leads PFM Townend’s dental team. PFM Townends provide accountancy ser- vices exclusively for dentists. Please visit www.pfmtownends.co.uk for further details. PFM Townends is a joint venture between Practice Finan- cial Management Ltd and Townends Chartered accountants. ‘Inheritance tax is a complex area where many taxes are involved and timings can be critical’