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Earn-outs - what is the tax position following the Pre-Budget Report?

Just in case you’re not sure if you have one or not – an earn-out arises when a business is sold and part of the purchase price is deferred, usually until the results of the current, and sometimes some of the future, trading periods are known. In many cases, the amount finally payable will vary according to the business’ results.

 

 

Date: 3rd December, 2007
Author: Cathy Corns

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