Splitting trading company with property

Splitting trading company with property

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I currently act for a trading company that owns a property, which is split into 5 units :-

1. Flat let to director at MV.
2. & 3. Used by the business.
4. & 5. Flats let to unconnected tenants - charged as Sch A in company.

Basically I want to transfer the trading arm to a NewCo, however I am concerned that the entire company may become a CIHC due to the one unit rented by the director.

Obviously if the entire profits will be charged at 30% then its not worth doing. Any comments please?
Fellowcraft

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