We have just taken on a new client that had previously acted for themselves, occasionally taking the advice of a 'family friend' as these people often seem to do. They have a limited company and earlier this tax year set up a second, dormant company. They then transferred their shares in the old company to the new company (paper for paper) therefore creating a 'holding company'. The first company also owned a number of properties which have since been transferred to the new co for market rate with a dividend being voted to pay for them.
On the face of it I would agree that everything they have done so far is technically okay but, as yet, they have not obtained HMRC clearance for any of this. It is my understanding that clerance should be obtained for all such transactions, is this something I can now do after the event?
The client has also stated quite confidently that as the second company does not trade and merely holds property that it is not associated. However, i was under the impression that holding assets such as property would make it associated even if no rent were charged and therefore the CT bands would be halved.
Can anybody please clarify these points for me?
Thank you in advance to all who can assist - especially at such a busy time of the year.
- Checking a contract 281 8
- Flat Rate Scheme 296 15
- Fee agreed but client disagrees on amount 717 9
- Altered PAYE cheque 212 5
- deleting customers on Sage 50 148 7
- VAT on garage rent 314 14
- Value-shifting 53 1
- Pattern for CTA 201 4
- Debiting private use proportion to directors loan account 439 18
- SDLT exemptions/reliefs 76 2
- Incorrect Accounts. Is it worth taking action against the old accountant? 199 3
- Film Partnership Enquiries - am I just unlucky? 227 5
- EBT 173 1
- Tax deductable portion of home rental cost 162 8
- Giving a seminar 523 28
- Joint Filing Help 102 1
- ICAEW student, Dilema with client & boss 2,227 32
- Interest on Loan to a Company 252 2
- Writing off bad debts 181 4
- Added years superannuation 59 1
- Desperately seeking Susan, Sam or anyone with any other name 1,202
- Experience with Islamic investor following Sharia-compliant rules? 600
- Darwinpay Partnership Assessment 404
- S464A Charge to tax: conferring benefit & BIK 310
- Bank interest in 'near' facility recall situation 191
- Agent fees to sell business 186
- Alphabet shares 184
- ACCA continuity of practice arrangement needed 180
- Quirky thread of the year: Community Awards 160
- VAT codes In Sage. Am I correct? 158