Sale of business

Sale of business

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Hi

One of my client sold his business ( Limited Company) as a going concern to his nephew ( Limited company)

1) He sold his company just after 6 months trading. Do I have to file accounts to company house/ Hmrc and CT return? if yes then what's the deadline is?

2) Old company was voluntarily VAT registered do new company will have to get vat register?

Thanks in advance

Replies (7)

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By DMGbus
04th Dec 2014 21:50

Sale of trade or sale of shares

Easy if sale of the shares, the responsibility passes to the new owner of the company and they would notify HMRC of address changes, etc.

If sale of the business was from one company to another, with no share ownership changes the old company remains but in a slimmed down or dormant form with responsibilities as to VAT, PAYE, Corporation Tax.

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By bernard michael
04th Dec 2014 15:22

What about tax liabilities following the sale will they be paid?

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Replying to EasyMTDVAT:
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By sukuho
04th Dec 2014 15:28

 

 

I want to strike off company by following all company house and hmrc requirements. There is no tax liability because company incurred loss during its 6 months trading period.

 

Thanks

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By johngroganjga
04th Dec 2014 19:37

What has happened to the proceeds of sale received by the old company? Have they perhaps been used to pay off the old company' creditors? What is now the financial position of the old company (I.e. its net assets) after providing for any tax liabilities arising on the sale of its business?

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By sukuho
05th Dec 2014 15:40

 

 

Thanks John

 

Actually its a very small company only traded around 6 months and incurred losses now the owner sold its business as a going concern to his nephew just to get rid of lease agreement. net assets of the co is around (minus £10,000). New owner will pay for stock £8,000 in six months time.

 

 

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By johngroganjga
05th Dec 2014 15:52

And who are the creditors?

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By johngroganjga
06th Dec 2014 16:05

And what is the plan as to how they are going to be paid?

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