Transfer of intangible assets to a company owned by the owner of the assets

Transfer of intangible assets to a company...

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Hi All,

I have a question related to a transfer of intangible asset and intellectual property.
There are two company directors, who are also the company's only shareholders.
Before incorporating, they owned a software product.
Eventually they decided to set up a limited company and transfer the rights to this software from them to the company.
This way they have limited liability protection and obtain salary and dividends paid by the company, which generates an income stream from the software.

I have following questions:
1) Is it possible to transfer the intangible asset (software) from these two individuals to the company at no cost?
2) What paperwork should be submitted to HMRC, Companies House or any other government organization?
3) Is there any tax involved with such transfer (e.g. CGT cost)?

Thank you in advance for your help

Replies (4)

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By User deleted
10th Dec 2014 10:23

Are you ...

... one of the directors, or their adviser?

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By solaris
10th Dec 2014 10:49

I am one of the directors

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By johngroganjga
10th Dec 2014 10:53

Then you need an accountant to answer the questions you raise and a lawyer to effect the transfer of the software rights.

Thanks (1)
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By User deleted
10th Dec 2014 11:27

Agree with John

In answer to your questions:

1. Yes

2. None that I am aware of.

3. Yes

Engage an accountant and s/he wlll be able to expand.

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