Asset holding company

Asset holding company

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Hi 

I have a client who has a large number of assets in his company, he is wanting to know if these assets should be moved to a separate company which rents the assets back to the original company should the worst happen, are there any implications to this?  Company 1 has 5 directors and shareholder (3 silent who do not take salary or dividends as yet) 2 other directors and shareholders who have invested over £100 in plant and machinery, it is the plant and machinery that may be transferred to the new company, the new company, will have 2 directors and shareholders.

Any advice would be greatly appreciated.  I know there will be implications of group allowances.  The reason for doing this is to protect the assets should anything go wrong, but it would need to be set up correctly and be the right thing to do.

Thanks in advance

Replies (6)

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By johngroganjga
13th Feb 2015 10:39

How is the new company to be capitalised?  If it does not buy the equipment for cash the problem is not solved.  

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By Portia Nina Levin
02nd May 2015 10:55

(No subject)

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By A E Scott
16th Feb 2015 10:35

sorry, that should have been £100k the investment was cash injection by the director hence the reason why they do not want to loose it in the event of anything going wrong, they are merely trying to plan in the event of anything going wrong.

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By johngroganjga
16th Feb 2015 10:44

And the answer to my question?

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By A E Scott
18th Feb 2015 10:52

Johngroganjga, the assets will be purchased with cash, so the assets will be owned outright.

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By A E Scott
02nd Mar 2015 12:24

Are there any more comments on this as i haven't really seen any other discussions on the topic

Thanks in advance :)

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