co A a company engaged in the top end property rental serviced apartments and property management of a number of its own short leases, and of sublets from co B an associated company [ both owned by same director / shareholder ] who owns a number of freehold + long residential leases
it is mooted that co A should acquire the shares in co B[essentially the property investment co] This would result in CGT for the owner and a liabilty loan account of mega proportions in Co A
or
acquire the properties from B only
what are the CGT and or any implications of this essentially hive-up
and
if the new merged coA& with B's assets are sold in the near horizion
firstly SDLT springs to mind - is this chargeable ?
major bank finance in B will be paid done so thats not necessarily an issue
Does it make any difference if co B was to become a subsidiary of A - thinking that if there was a disposal then ER would be available
Am trying to get to see a tax specialst - but not able to see them until late next week @ the earliest , hence the query here in the interim for a basic appreciation of the implications.
tia
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Artificial transactions in securities
Bear in mind the artificial transactions in securities rules that are likely to deem any purported capital sum received by the shareholder as an income dividend.