Company property

Company property

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A family company built up by mum and dad owns a leasehold property worth around £500,000. As a means of ensuring a continuing income source for their retirement they want to transfer the property to a new company where the shares are owned by themselves.

In the original company their son owns 10% of the share capital.

a) Is it possible to form a subsidiary company, transfer the property between the existing and new co and then distribute the shares as a "scrip" or sistribution in specie without attracting stamp duty or falling foul of the de-merger regulations?
b) If the answer to a) is yes then presumably it would be possible to transfer the son's shares in newco to his parents in exchange for some of their shares in oldco claiming hold-over relief?
c) What are the stamp duty implications?
tactical

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