City infrastructure with blue colour overlay

Tax Planning

This module examines the various tax issues that might arise throughout the life of a JV for the delivery of a global mega infrastructure project and how that might differ according to the type of JV used.

The tax considerations on a joint venture will largely be driven by the way in which the venture is structured. There are differences depending on whether it is a corporate JV, a partnership JV, or a contractual JV. 

David Taylor

Group Commercial Director, Costain Group PLC

Tax planning will be important at the initial stages of any JV and the choice of vehicle will largely determine the tax issues that may arise throughout the project

Key Considerations

JV Company

  • Tax liabilities on transfer of assets or business into a JV
  • Understand tax rules applicable to shareholders
  • Issues around extracting profits
  • Potential for capital taxes, land taxes and VAT at termination

JV Partnership

  • Each partner liable for tax on its share of profits
  • Need to consider issues around asset disposal

Contractual JV

  • No joint and several liability for any losses
  • Consider structuring arrangements around profit sharing
Simmons Penny

Penny Simmons

Legal Director

Given the complexities involved, it is important to obtain local tax advice

Meet the team

Show me all
Jason Collins

Partner, Head of Litigation, Regulatory & Tax

Jason is one of the leading tax practitioners in the UK, and leads the firm's commercial litigation, regulatory and tax litigation unit.

Collins Jason
Borja Martín Ariza

Partner

Borja is in the Madrid Corporate team, and has extensive local and international experience in M&A, private equity, as well as in general company law and governance matters on a variety of industries and sectors such as renewable energy, infrastructure, and Advanced Manufacturing & Technology.

Martin Borja
Ewan Robertson

Partner

Qualified in Australia and the UK and with US and other international experience, Ewan's expertise covers national and cross border mergers and acquisitions and other corporate transactional matters including joint ventures and strategic partnerships as well as equity fundraisings and private equity, reorganisations and reconstructions and general commercial advisory work.

Robertson Ewan
Eloise Walker

Partner, Head of Corporate Tax

Eloise is head of the Corporate Tax team, specialising in corporate tax, structured finance and investment funds for a wide range of corporate and financial institutions.

Walker Eloise

Out-Law / Your daily need to know