I have a small Ltd company client owned by 2 director/shareholders that have been in a dispute for a number of months. They have resolved to split the business as there are two distinct sources of income. One of the directors (51% owner) is to form a new Ltd company and take approx 60% of the old company's income.
The other director (49% owner) is then to retain the old company with the balance of income and become sole director/shareholder.
Are there any tax implications of this transaction?