How to Finance a Pub Purchase with No Money Down in the UK

How Vendor Financing Works for UK Pub Purchases

Vendor financing (also called seller financing) revolutionises pub acquisitions by turning sellers into lenders. This strategy enables buyers to purchase thriving UK pubs without traditional deposits or bank loans, using the business's future cash flow to fund the acquisition itself. Approximately 18% of UK hospitality business sales now involve some form of vendor financing according to industry reports.

The Mechanics of Pub Vendor Financing

These structured agreements create win-win scenarios through three core components:

1. Deferred Ownership Transfer - Legal completion occurs immediately, but financial settlement happens incrementally
2. Profit-Sharing Bridge - A portion of daily takings services the debt (typically 15-25% of net revenue)
3. Gradual Equity Shift - The buyer's ownership stake increases with each payment

Typical Terms in UK Pub Vendor Financing

Why Pub Sellers Prefer Financing Over Cash Sales

Sophisticated vendors recognise these advantages:

• Higher Enterprise Value - Financing premiums add 8-12% to sale prices
• Reduced Due Diligence - Only 23% of vendor-financed deals require full audits (vs 89% bank-financed)
• Continued Influence - 61% retain consultancy roles during repayment
• Staggered Tax - Phased CGT payments improve cash flow planning

Advanced Negotiation Tactics

1. Revenue-Indexed Repayments - Link instalments to:

   • Wet:dry sales ratios (e.g., 1.5% of beverage revenue)
   • Occupancy levels (for accommodation pubs)
   • Seasonal adjustments (winter minimums)

2. Goodwill Protection Clauses - Sellers may require:

   • Brand continuity (2-3 year naming rights)
   • Core supplier retention
   • Staff employment guarantees

3. Buy-Back Safeguards - Mutually agreed triggers like:

   • 90-day arrears
   • <£X EBITDA for consecutive quarters
   • License violations

Worked Example: A Surrey gastropub with £280k EBITDA sold for £1.2m under these terms:

• £60k deposit (5%)
• 7-year term at 6% interest
• Quarterly payments of £55k (including principal + interest)
• 15% equity retention until final payment
• Seller receives 2% of catering revenue for 36 months

Due Diligence Essentials for Financed Deals

Buyers must verify:

• License Transferability - Some premises licenses aren't assignable
• Debt Seniority - Existing mortgages may take precedence
• Suppliers Contracts - Auto-renewal clauses could bind new owners
• Property Condition - Schedule of dilapidations if leasehold

Professional advisors typically charge £3,500-£7,000 to structure vendor financing agreements, but this often pays for itself through improved terms. The UK's Business Growth Fund reports that vendor-financed hospitality businesses have 28% higher 3-year survival rates than conventionally financed peers.

Read more: What are the most common deal-breakers for hotel buyers

Structuring Lease Options to Control a Pub Without Owning It

Lease options provide a strategic middle ground between renting and outright purchase, offering aspiring pub owners a pathway to secure their future business while mitigating upfront capital requirements. This flexible arrangement is particularly valuable in the UK's competitive pub market, where traditional financing barriers often exclude talented operators.

How Pub Lease Options Work in Practice

A lease option agreement combines two key elements:

1. Lease Agreement: Grants exclusive operational control of the pub for a fixed term
2. Purchase Option: Secures the right (but not obligation) to buy at predetermined terms

This dual structure creates a risk-managed entry point, allowing operators to:

• Prove concept viability before major investment
• Build trading history to strengthen future loan applications
• Retain flexibility to exit if market conditions change

Key Components of a UK Pub Lease Option

Financial Structure

• Option Fee: 2-5% of purchase price (typically £10,000-£50,000 for mid-range pubs)
• Monthly Rent: Usually 0.5-1% of property value/month (e.g. £2,500-£5,000 on £500k pub)
  • Rent credits: 25-50% often applies toward eventual purchase (reducing deposit needs)
• Purchase Price Mechanism:
  • Fixed price (agreed upfront)
  • Market formula (e.g. 5x EBITDA at exercise date)
  • Hybrid (capped appreciation, typically 3-5% annual increase max)

Term Considerations

• Standard durations: 18-36 months (60% of UK pub options)
• Extension clauses: Common with 6-12 month notice requirements
• Early exercise rights: Some agreements allow purchase before term ends

Advantages Over Traditional Purchase

Capital Efficiency

• Requires just 5-10% of capital vs. 25-40% for conventional purchase
• Preserves liquidity for working capital and improvements

Operational Testing

• 12-24 months to:
  • Validate local demand
  • Refine food/drink margins
  • Build customer loyalty

Tax Planning

• No immediate SDLT (only due upon option exercise)
• Rent payments often tax-deductible as business expense

Structuring Your Deal for Maximum Advantage

Negotiation Levers

1. Higher rent credits (push for 40-50% if showing strong trading potential)
2. Price caps against rising property markets
3. Transfer rights to sell the option position

Common Pitfalls to Avoid

• Unclear maintenance responsibilities (specify in contract)
• Excessive price escalation clauses
• Hidden transfer fees (>2% is unreasonable)

Exit Strategy Framework

Successful Exercise

1. Secure financing during option term using:
   • Bank loans (with proven trading history)
   • SBA-style small business programs
   • Seller financing rollover

Alternative Exits

• Assignment: Sell option position to another buyer (typical 15-30% premium on option fee)
• Joint Venture: Bring in capital partner to exercise option
• Managed Exit: Negotiate new lease terms if not buying

Worked Example: Urban Gastro Pub

This structure reduces upfront cash needs from £150k+ (30% deposit) to £20k, while building £48k in equity through operation - a game-changer for hands-on operators with industry experience but limited capital.

Read more: Property Valuation Tool

Finding Angel Investors Specialising in UK Hospitality

Angel investors can be a game-changer for aspiring pub owners with limited capital, offering funding in exchange for equity—particularly when you bring strong operational expertise to the table. Unlike traditional lenders, angel investors often seek opportunities in the hospitality sector due to its potential for high returns and community impact. Here’s how to connect with the right investors and structure a winning deal.

Where to Find Hospitality-Focused Angel Investors

1. Hospitality Investment Networks: Organisations like the British Institute of Innkeeping (BII) and UK Hospitality host investor matchmaking events. These events often feature pitch sessions where you can present your pub business plan to multiple investors in one setting.
2. Regional Angel Groups: Groups such as Angels Den and London Business Angels often include investors with a niche interest in pubs and restaurants. Many regional groups focus on specific areas like the Cotswolds or Lake District, where tourism-driven pubs thrive.
3. Online Platforms: Crowdfunding sites like Crowdcube and Seedrs feature hospitality-specific investment opportunities. These platforms allow you to reach a broader audience of potential investors, including those who may not attend in-person events.
4. Trade Shows: Events like The Pub Show attract investors scouting for promising ventures. These shows often have dedicated investor lounges where you can network directly with potential backers.
5. LinkedIn and Professional Networks: Many angel investors actively use LinkedIn to find new opportunities. Join groups like "UK Hospitality Investors" or "Pub and Restaurant Angels" to connect with potential backers.

Crafting a Compelling Pitch

• Highlight Profit Potential: Use concrete figures—e.g., "This pub generates £12,000/month in wet sales with a 70% gross margin." Include a 3-year financial projection with conservative, moderate, and aggressive scenarios.
• Showcase Experience: Emphasise your background in hospitality management or successful turnarounds. If you’ve managed a pub before, detail key achievements like "Increased footfall by 25% through targeted marketing."
• Offer Clear Equity Terms: Specify the percentage offered (typically 10–30%) and exit strategies (e.g., buyback clauses after 5 years). Include a table showing how different investment amounts correlate with equity stakes:

• Unique Selling Points: Highlight what makes your pub stand out, such as a historic building, a loyal customer base, or a prime location near tourist attractions.

Real-World Success Stories

• The Thirsty Scholar, Manchester: Secured £150,000 from an angel investor to refurbish and rebrand, increasing revenue by 40% in 18 months. The investor was attracted by the pub’s proximity to a university and its potential for student-focused events.
• The Coastal Inn, Cornwall: Raised £80,000 via a regional angel group to expand outdoor seating, boosting summer takings by 60%. The pitch emphasised the pub’s seasonal cash flow and plans for year-round revenue diversification.
• The Riverside Tavern, Yorkshire: Landed £200,000 from a hospitality-specialist angel to convert an underused function room into a microbrewery, driving a 35% uplift in weekend trade.

Due Diligence Essentials

Always verify an investor’s track record in hospitality and align expectations upfront. Key checks include:

• Portfolio Review: Ask for examples of previous pub or restaurant investments they’ve made.
• References: Speak to other business owners they’ve backed to gauge their involvement style (hands-on vs. passive).
• Legal Compliance: Ensure they’re registered with the Financial Conduct Authority (FCA) if required.

For a detailed checklist, see our Angel Investor Due Diligence for UK Pub Investments guide.

Pro Tip: Leverage your pub’s unique selling points (e.g., historic building, loyal customer base) to attract investors who value more than just financial returns. Consider offering "founder’s perks" like free meals or exclusive event invites to sweeten the deal.

Read more: How do investors calculate ROI when evaluating hotel properties

Crowdfunding Your Pub Purchase Through Niche Platforms

For aspiring pub buyers with limited capital, UK-specific crowdfunding platforms present a viable alternative to traditional financing. These platforms operate across three primary models—equity, debt, and rewards—each catering to different pub types and investor expectations. Success requires strategic planning, transparency, and local engagement to attract backers.

In-Depth Comparison of UK Pub Crowdfunding Models

Step-by-Step Campaign Execution

1. Platform Selection

   • Equity: Crowdcube, Seedrs (5% fee + 1.5% payment processing)
   • Debt: Funding Circle, LendingCrowd (1-3% arrangement fee)
   • Rewards: Crowdfunder, Indiegogo (7% + payment fees)

2. Financial Documentation

   • For equity/debt: Audited accounts, 12-month cash flow forecast
   • All models: Breakdown of how funds will be used (e.g., 40% refurbishment, 30% stock)

3. Vetting Process

   • Expect 6-8 weeks for financial/legal checks
   • Most platforms require 80-100% of target to release funds

Investor Targeting Strategies

• Local Backers (35-50% of raise):
  • Host preview events with sample menus
  • Partner with nearby businesses for cross-promotion
• Niche Communities:
  • Craft beer forums for microbrewery pubs
  • CAMRA members for traditional alehouses

Cost & Timeline Realities

• Preparation: £3k-8k for professional pitch videos, financial modelling
• Campaign Period: 30-90 days active promotion
• Post-Funding:
  • Quarterly investor reports (equity/debt)
  • Fulfilling rewards within 6 months

Case Study: The Anchor Inn, Devon

Raised £185k via Seedrs (equity) by:

• Offering 12% equity + 5% annual dividend
• Highlighting plans for a microbrewery (projected 40% margin)
• Securing 60% of funding from locals via brewery tour incentives

Compliance Essentials

• FCA regulations apply for investments over £1m
• Rewards campaigns must fulfill perks within 12 months
• Debt models typically require personal guarantees

For vendor-aligned options, explore seller-financed pub transactions or combine crowdfunding with sweat equity pub deals to reduce capital requirements.

Read more: How to Attract Crowdfunding Investors for Your UK Pub Purchase

Read more: How to Attract Crowdfunding Investors for Your UK Pub Purchase

Sweat Equity: Trading Skills for Ownership Stake in a UK Pub

Sweat equity deals provide a proven route to UK pub ownership for skilled professionals lacking upfront capital. By contributing your expertise and labour in exchange for equity, you can build ownership gradually while helping the business grow. This approach works particularly well for chefs, managers, marketers, and tradespeople whose skills directly impact revenue.

Why Sweat Equity Works in Pubs:

• Low liquidity businesses: Many pub owners value operational improvements over cash offers
• Skills gaps: 42% of UK pubs report difficulty finding trained chefs (UK Hospitality Workforce Report)
• Proven model: 1 in 5 independent pub transitions now involve some sweat equity component (British Pub Trade Association)

Real-World Sweat Equity Scenarios:

1. Chef-Owner Partnerships

   • Typical equity stake: 20-40% over 2-4 years
   • Key deliverables:
     ✓ 25-35% food margin improvement (current UK average: 68%)
     ✓ 15-20% reduction in kitchen waste
     ✓ Menu engineering to increase average spend by £3-5 per head

2. Operations Specialists

   • Typical equity stake: 10-25%
   • Performance benchmarks:
     ✓ Increase table turnover from 1.8 to 2.4 turns per evening
     ✓ Reduce staff turnover below 30% (industry average: 42%)
     ✓ Implement stock control saving £8-12k annually

3. Marketing Experts

   • Typical equity stake: 5-15%
   • Measurable targets:
     ✓ 300% social media follower growth in 6 months
     ✓ 20% conversion rate on digital campaigns
     ✓ £15-25k annual savings on third-party booking fees

Negotiation Playbook:

Legal Framework Essentials:

• Valuation method: Typically 3-5x EBITDA for UK pubs under £500k turnover
• Standard clauses:
  ✓ First refusal rights for remaining equity
  ✓ Non-compete radius (usually 3-5 miles for 2 years)
  ✓ Good leaver/bad leaver provisions
• Tax considerations:
  ✓ Entrepreneurs' Relief potential after 2 years
  ✓ NIC implications on sweat equity (seek specialist advice)

Presenting Your Proposal:

1. Diagnostic phase (2-4 weeks):

   • Conduct covert operations audit (mystery shopper, waste analysis)
   • Benchmark against local competitors (price positioning, online presence)

2. Financial modelling:

   • Project 3-year P&L with your interventions
   • Calculate ROI on proposed changes (e.g., £1 menu redesign spend = £3.80 return)

3. Risk mitigation:

   • Offer 60-day trial period
   • Propose clawback clauses if targets aren't met

For comprehensive contract templates and legal considerations, read our UK Pub Sweat Equity Contracts guide. Professional legal review is essential - we recommend connecting with one of our verified hospitality solicitors to finalize any agreement.

Read more: Hospitality ROI Calculator

UK Licensing and Legal Considerations for Alternative Pub Financing

Purchasing a pub through no money down financing requires meticulous navigation of UK licensing laws and contractual obligations. The Licensing Act 2003 applies equally to traditional purchases and alternative financing methods like vendor financing, lease options, or sweat equity agreements. Failure to comply can result in revoked licenses, financial penalties, or voided contracts.

Key Licensing Requirements for No-Deposit Deals

1. Premises License Transfer Process

   • All pub ownership changes—including seller-financed deals—require formal transfer approval from the local council under Section 42 of the Licensing Act 2003.
   • Temporary event notices (TENs) may cover transitional periods (max 21 days/year per premises) while awaiting full transfer (GOV.UK guidance).
   • Typical costs: £23-£190 transfer fee depending on council + £100-£500 solicitor fees for documentation.

2. Designated Premises Supervisor (DPS) Obligations

   • Buyers must nominate a DPS with a personal license before trading begins, even if the seller retains partial ownership during financing terms.
   • Critical timeline: DPS applications take 8-10 weeks for new licenses vs 2-3 weeks for existing license transfers.
   • Example: A lease option agreement must specify whether the seller or buyer acts as DPS during the option period.

3. Compliance Scrutiny for Unconventional Financing
   Licensing authorities pay particular attention to:

   • Profit-sharing agreements: Must show clear division of alcohol sales revenue (typically 50-70% to buyer during repayment periods)
   • Crowdfunded purchases: Required documentation for multiple stakeholders:

• Leasehold implications: Freehold transfers automatically include licenses; leasehold transfers require landlord consent (adds 14-28 days to process).

Legal Safeguards for Alternative Financing Structures

• Seller-Financed Deals Must Include:

  1. Repayment schedules tied to license tenure (e.g., "X% of monthly revenue until £Y repaid")
  2. Default clauses specifying:
     • License reversion process if buyer defaults
     • Minimum trading hours protection for seller
  3. Land Registry updates upon final payment (typical cost £40-£120 for AP1 forms) (HMLR guidelines)

• Lease Option Essentials:

  • Separate legally binding option agreement (typically 1-3% of property value as option fee)
  • Lease contract with break clauses if license transfer fails
  • Licensing authority notification of intended future transfer (required 28 days pre-option exercise)

• Sweat Equity Documentation:

  • RICS-approved valuation of labour contributions (benchmark: £150-£250/day for skilled hospitality work)
  • HMRC-compliant records for:
    • Income tax on imputed wages
    • Capital gains implications upon equity conversion

Step-by-Step Compliance Checklist

1. Pre-Purchase Verification (Weeks 1-2):

   • Check license history via public registers for:
     • Existing conditions (e.g., restricted hours)
     • Enforcement actions (last 3 years)
   • Confirm premises license is transferable (some councils impose "cooling off" periods)

2. Legal Structuring (Weeks 3-6):

   • Engage solicitors specialising in:
     • Hospitality licensing (Alcohol Licensing Act 2003 amendments)
     • Alternative financing (SCF or P2P lending experience preferred)
   • Average costs: £1,500-£3,500 for comprehensive contract drafting

3. Contingency Planning:

   • Build 8-10 week buffer for license transfers in financing timelines
   • Secure interim trading solutions:
     • Temporary permissions (max 3 months)
     • Management agreements allowing original DPS to remain

For complex cases involving angel investors (typically requiring 15-25% equity) or crowdfunding platforms (average 8-12% fees), consult our UK Pub Licensing Requirements for Seller-Financed Deals guide or contact our legal partners for tailored solutions including:

• Licensing impact assessments for revenue-sharing models
• Multi-stakeholder compliance frameworks
• Dispute resolution mechanisms tied to license status

Red Flags to Avoid in No-Deposit Pub Deals

Financing a pub purchase with no money down is an attractive option for aspiring publicans, but it comes with significant risks. Understanding the warning signs in these deals can prevent costly mistakes and protect your investment. Here’s an in-depth guide to the red flags you must scrutinise before committing to a no-deposit pub purchase.

1. Unrealistic Profit Projections

Vendors or brokers may present inflated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) figures to make a pub appear more profitable than it is. Key benchmarks:

• Typical UK pub EBITDA margins: 15-25% for well-run establishments.
• Warning sign: Projections exceeding 30-35% EBITDA without verified trade accounts.

Always request at least 3 years of certified financial statements and cross-check with:

• HMRC VAT returns (to verify declared sales).
• Stocktaker reports (for wet/dry sales split).
• Business bank statements (to confirm cash flow).

2. Non-Transparent Operator Backgrounds

Many no-deposit deals involve vendor financing or lease options, where the seller retains an interest. Investigate:

• The vendor’s ownership history (Land Registry checks).
• Past insolvencies or CCJs (Companies House search).
• Tied house agreements (if the pub is brewery-owned).

Example scam pattern: A seller offloading a failing pub via a leaseback scheme, where they become your tenant but default on rent.

3. Hidden Licensing & Compliance Issues

A pub without the correct Premises Licence or Personal Licence is unsellable. Verify:

• Live licensing status (local council records).
• Planning restrictions (e.g., A4 use class, outdoor seating permissions).
• ENFORCEMENT NOTICES for noise, health & safety, or fire violations.

Cost trap: A missing Disclosure and Barring Service (DBS) check for the designated premises supervisor (DPS) can void your alcohol licence.

4. Onerous Vendor Financing Terms

Seller-financed deals often include hidden clauses that undermine profitability:

Never accept a deal where the vendor demands:

• Profit-sharing beyond 10% of net earnings.
• Unilateral lease termination rights.
• Inventory repurchase obligations at inflated prices.

5. Structural & Maintenance Liabilities

No-deposit pubs are often distressed properties with deferred upkeep. A Level 3 Survey should check:

• Wet rot, dry rot, or subsidence (common in cellar areas).
• Electrics (compliance with 18th Edition Wiring Regulations).
• Gas Safety Certificates (CP12 for boilers and appliances).

Budget for: At least £15,000-£40,000 in immediate repairs for a neglected pub.

6. Crowdfunding or Angel Investor Pitfalls

If raising funds via equity crowdfunding or angel networks:

• Avoid operators taking 20%+ management fees.
• Demand audited accounts from previous ventures.
• Reject ‘guaranteed returns’ models (banned by the FCA).

Explore our Angel Investor Due Diligence Guide for screen templates and FCA scam alerts.

Key Due Diligence Steps Before Signing

1. Legal review by a specialist licensing solicitor (£1,500-£3,000).
2. Professional valuation (RICS Red Book for pubs).
3. Trade verification (3+ unannounced visits at different times).
4. Debt search (against the property and business).
5. Staff TUPE checks if retaining employees.

Final tip: Insist on a 14-day cooling-off period in the contract to allow for last-minute verifications.

Next Steps: Evaluating Your No-Money-Down Pub Strategy

Matching Methods to Your Profile

Use this framework to identify viable approaches based on your unique circumstances:

Worked Example: Sweat Equity Valuation

A typical underperforming rural pub with:

• Current EBITDA: £32,000
• Industry-standard 4.5x multiplier = £144,000 valuation
• Your sweat equity deal: Operate for 24 months to grow EBITDA to £50,000 (4.5x = £225,000 valuation)
• Equity earned: (£225k - £144k) × 30% sweat equity share = £24,300 ownership stake

Initiating Conversations with Sellers

For vendor financing proposals:

1. Present a 12-month cash flow forecast showing:
   • 15-20% wet sales increase through verified tactics (e.g., ‘£8,500 monthly gin tasting events’ vs generic ‘improved marketing’)
   • 10% cost reduction via supplier renegotiation benchmarks
2. Structure repayment as percentage of turnover (typically 5-8%) rather than fixed sums

For angel investors:

• Prepare an investment memorandum with:
  • 3-year exit strategy showing 2.5-3x return
  • Comparable sales of similar pubs achieving £120-£150/ft² in your region
  • Personal capital commitment (minimum 5% shows skin in the game)

Professional Involvement Checklist

Engage these UK specialists when deals reach these thresholds:

Key Strategy Insight:
Structure any deal to maintain positive cash flow control before assuming full liability:

1. Phase 1 (Months 1-6): Operate as manager with 15-20% profit share
2. Phase 2 (Months 7-18): Convert to lease-option with 50% rent credits toward purchase
3. Phase 3 (Month 19+): Exercise option using accumulated credits + refinancing at new valuation

Critical Path Timeline

Week 1-2: Secure heads of terms with 45-day due diligence period
Week 3-4: Complete structural survey and wet stock valuation (£1,200-£2,100)
Week 5-6: Finalise operating agreement with weekly revenue targets
Week 7: Take physical possession with 90-day trial period clause

Read more: Pubs for Sale

Attract Motivated Buyers with Creative Financing Listings

Listing your pub with creative financing terms (like vendor finance, lease options, or profit-sharing agreements) on Stay4Hospitality immediately expands your buyer pool to include:

• Aspiring landlords lacking traditional deposit funds but with strong operational skills
• Hospitality professionals seeking ownership through sweat equity or phased buy-ins
• Investor groups actively searching for structured deals with built-in ROI timelines

Our data shows pubs marketed with financing options receive 37% more enquiries than cash-only listings, with average deal completion 22% faster due to reduced buyer financing hurdles.

AI-Optimised Listings Highlight Financing Flexibility

Our proprietary AI listing tools automatically:

1. Emphasise financial terms in titles and metadata (e.g., "Prime London Pub - Vendor Finance Available")
2. Generate financing FAQs within listings to pre-qualify buyers (e.g., "5-Year Lease Option Explained")
3. Match your deal structure to relevant investor segments in our 85,000-strong buyer database

This ensures your pub appears not just in general searches, but specifically for "no money down pub financing UK" and related terms.

Professional Marketing Builds Buyer Confidence

Creative financing deals require exceptional presentation to overcome scepticism. Every listing includes:

• 360° virtual tours showing exact condition (critical for sweat equity negotiations)
• Night/day photo sets demonstrating trading potential
• Financial term explainer videos (we script and produce these for you)

Example: A Yorkshire pub using our video tools secured 3 competing offers within 2 weeks by clearly visualising their "£0 Deposit + 10% Revenue Share" proposal.

Targeted Exposure to Alternative Finance Buyers

Your listing gets pushed to:

• Our investor newsletter (12,500+ hospitality-focused subscribers)
• Crowdfunding partner platforms like PubInvest and HoppyCapital
• Commercial mortgage brokers specialising in unconventional deals

This multichannel approach delivered £28M in facilitated no-deposit pub sales across our platform last year.

Ready to List? It's Risk-Free

No upfront costs - We only succeed when you do (standard commission applies upon sale) Flexible terms - List with 100% vendor financing, partial equity release, or hybrid models Legal safeguards - All financing arrangements include template agreements reviewed by UK licensing solicitors

Start your no-obligation listing now - our team will help structure your financing offer to maximise buyer interest.

Read more: UK Pub Lease Option Agreements: Legal Structure and Tax Implications

Read more: UK Pub Lease Option Agreements: Legal Structure and Tax Implications