Tavistock Investments PLC (AIM:TAVI) said the disposal of its wealth arm to Titian has qualified for Substantial Shareholding Exemption (SSE), so no tax will be payable on the £40mln cash proceeds.
In the absence of the SSE, the transaction might have given rise to a tax charge of approximately £7mln, said the AIM-listed firm.
Tavistock added its net asset value per share had risen to 8.5p on 31 August 2021 from 2.59p on 31 March 2021.
This was due to the completion of the transaction and the recent buy-back and cancellation of 4.75% of the company's issued shares.