Brodies provided UK tax and incentives advice in connection with the recommended £260 million cash acquisition of Telford Homes PLC (an AIM listed company) by CBRE Inc. The transaction was affected by way of a scheme of arrangement under Part 26 of the Companies Act.

Key highlights

  • Purchaser is a US Fortune 500 company listed on the NYSE.
  • We identified the relevant tax issues, including the implications of the new rules on Capital Gains Tax for non-residents selling residential property.

Outcome

Our involvement was to ensure that the scheme document that would go before the Court to be sanctioned (effectively to ratify the acquisition), correctly identified the relevant tax issues, including the implications of the new rules on Capital Gains Tax for non-residents selling residential property, and how the incentive arrangements operated by Telford Homes would be dealt with under the acquisition.

We also advised on the stamp duty treatment of the acquisition and relevant aspects of lodging the scheme with Companies House, as well as other tax implications of the deal. Our considerable experience in advising on share scheme, stamp duty and tax aspects of stock exchange transactions meant that we were well placed to provide tax advice for this transaction.

Contributors

Isobel d'Inverno

Director of Corporate Tax