Dividend in specie

Dividend in specie

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I want to transfer a property out of a limited company to a retiring director by a dividend in specie.

What are the accounting adjustments?
What effect does this have on corporation tax?
Is stamp duty payable?
What are the VAT implications?

Leah

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By User deleted
24th Oct 2006 18:00

Answers tentatively below.
What are the accounting adjustments? Debit fixed assets, credit Director
Dr P & L, CR dividends paid with book value, ratyher than market value
What effect does this have on corporation tax?Deemed disposal at market value/CT on profit realised.
Is stamp duty payable? No SDLT is payable
What are the VAT implications? None unless builing is let and de-exempted
Are ther any other shareholders?
If there are, then there is a risk the Revenue will treat this as remuneration unless all the paperwork is perfect-i.e. is there a waiver by the other shareholders.
Is this value shifting for CGT amongst shareholders.
etc. etc.

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