Company reconstruction

Company reconstruction

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Company A is acquiring the whole of the issued share capital of company B for £700,000 more than its NAV

The following day, company B (when it will have no debtors, creditors or bank balance) is to hive its future trade up to company A and become a dormant shell.

What should the consideration for the hive-up be? Presumably £700k?

Company A then needs to write down the value of its investment in company B, but how does company B avoid a tax charge on this sale of "goodwill"?  

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By User deleted
23rd May 2015 12:51

What tax charge?

You have a group

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