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