Case Studies

At HSKSG we have a wide-ranging client base, but we work predominantly with growing owner-managed businesses who want us to help them grow their business, or individuals who wish to minimise their obligations and maximise the rewards of their success.

Below are just a few examples of the different types of projects we have successfully carried out for our clients.  Drop us a line for a no-obligation appointment to discuss how we can help you to achieve your aims and ambitions.

Divorce Settlement Case Study

Problem

The Forensic Accounting and Litigation Support Team at HSKSG were approached by the family law team at a firm of lawyers to assist them in dealing with a divorce settlement for one of their clients.

Their client was a director and shareholder of a very profitable family company and the lawyers acting for the spouse were claiming half of a significant business value.

Our Forensic Accounting and Litigation Support team, working closely with the lawyers and their client, formulated a robust business valuation and justification model, which was proposed to the spouse’s lawyers.

Solution

As the valuation was initially rejected, a full report was prepared by us in order to confirm and justify the valuation, in readiness for submission to the Court.

However, after further correspondence and due consideration by the spouse’s lawyers, the valuation, being considerably lower than the initially suggested value, was agreed by all parties.

In utilising our expertise and experience, and by taking a practical, hands on approach, an efficient and cost effective solution was reached in an acceptable timescale.

Tax Enquiry Case Study

Problem

The HSKSG Taxation Services team encountered a situation whereby a client sold his business following which we completed the tax computations relating to the disposal.

The client then received an enquiry from HM Revenue & Customs advising him that a previous agent had made a claim to rollover a capital gain at the time the business was acquired, a number of years previously. This meant an increased tax liability and the Inspector was seeking a penalty.

Solution

From the revised computations, due to issues of timing, it was clear that losses arising were not able to be set against the capital gain. However, we decided to look at it again and by reviewing the management accounts we were able to make use of a little known tax rule. Having extended the accounting period, this allowed us to restate the computations and set the losses against the gain. The Inspector at first was somewhat reluctant but after some persuasion agreed to the adjustment which resulted in a tax saving of £12,000.

Being prepared to look a little harder for a solution to an unexpected problem paid dividends.

Share Option Scheme Case Study

Problem

HSKSG Taxation Services were approached for advice by the owners of a rapidly growing business who wanted to retain and incentivise their key people by providing them with shares in the Company,

As giving shares can give the individual a tax liability, without the cash to meet it, and create issues if things do not go to plan, we advised the setting up of a share option scheme. No tax issues arose and if the employee were to leave, the option would lapse.

Solution

What in fact happened was that the business was sold allowing all to share in their success whilst securing a low rate of tax.  The added benefit for this particular client was that the exercise of the options received generous tax relief which added over £1 million to the consideration received on sale.

Here's what we
can do for you

We offer a range of tax and accountancy services to help you develop and grow your business, as well as personal tax services, estate planning and probate.