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"?