UK Company Assets Split/Chargeable Gains

[MOBrien]

Hello
New to this forum so please bear with me.

I currently provide managment accountacy services for a company in the UK. The company is fashioned with three main trades: Wholesale, Transport & Retail. As such, i have evaluated that the wholesale side of the business is making a heavy loss and the Transport & Retail is carrying the company. With this in mind, it is of my opinion to split the company into 3 seperate companys (Wholesale Ltd, Transport Ltd, Retail Ltd). The balnace sheet has a number of assets that will need to be transferred into the new companys to seperate accordingly. Would anyone have advice regarding the tax situation on selling/transfering assets to the other companies and advice on using a holding company for the seperate companies? Im thinking along the lines of Corporation Tax & Chargeable Gains which if exposed to would want to be efficient about.

Thank you for your reply in advance.
Kind Regards
MO'Brien

 

[Becky]

Hello and welcome aboard!

Depends on the group structure once the new companies are established - intergroup transfers are usually done at no gain/no loss, so as long as assets are not disposed of outside the group then a chargeable gain may not arise.

More about it in the HMRC manuals here: CG45300+ - CAPITAL GAINS MANUAL: Contents