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.
- Taxfiler - SA100 - More efficient? 662 5
- See you all on the other side 707 6
- 12Pay 471 2
- dividends 641 2
- R&D 333 1
- Quarterly Reporting - The Logistics 1,193 17
- Auto enrolment contribution rates 443 3
- How long are you waiting for appeal reply 427 4
- Borrowing money to loan to company 381 1
- Mother as Guarantor for Son's mortgage 551 5
- Seeking a tax case 655 9
- When do we qualify for state pension? 513 4
- Companies house strike off 578 3
- Tax treatment of alterations to property 441 2
- Moving to the cloud 754 9
- Iris open space/doc exchange for SATRs 218 2
- How much to charge for payroll? 913 16
- Unincorporated charity transfer to CIO 219 4
- BTC vs Digita 1,093 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 509 4
- HMRC Joint Filing 563
- Capital Contribution towards a company car 420
- Capital Reduction & Impact on EIS Shares 373
- IRIS and FRS 102 355
- Capitalising Finance Lease 328
- USA help 318
- Marginal rates of tax 309
- National Minimum Wage issue on Directors joining a Workplace Pension 307
- Dormant company accounts under FRS 102 295
- Class 2 NI 287