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Can Ltd. dormant companies own assets?

What non-income producing assets can a Ltd. dormant company own?

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I was thinking of gifting some non-income producing (financial) assets to a dormant company I own - such as private shares in another company I own, and tangible assets such as land, freehold property and precious metals. The company wouuld not be making any transactions, or need a bank account etc.

Would that be allowed? 

Note: I fully understand the tax implications of gifting assets, and the company is not registered to my home address incase anyone wants to highlight the risk of being robbed etc. (not that that would happen, given how vague the public accounting is for micro companies). I could in theory even make it unlimited, eliminating the need to file any public accounts (except maybe a connfirmation statement).

Thanks. 

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By David Ex
17th May 2021 23:35

Sure, go for it. You seem to be on top of all the detail.

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By Calculatorboy
18th May 2021 00:18

Its a rather clumsy way of trying to legally divest oneself of ownership of personal assets ....and such a 'clever' little plan would not work.

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By thevaliant
18th May 2021 01:23

Ignoring the tax, of which I know nothing, then yes, gift away.

In the year in which you did the gifts, clearly there are transactions so the company wouldn't be dormant; but thereafter assuming no income then the company would be dormant after that.

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Replying to thevaliant:
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By Tax Dragon
18th May 2021 05:38

The only thing I'd add to your answer is 'es' after your third word. The plan pretty much runs the gamut of available taxes. Including NIC (which isn't even a tax, is it?) - the dormant company could eg have class 1A to pay on that non-income-producing freehold property.

Is liability to pay tax (or NIC, which isn't even a tax, is it?) enough to mean a company isn't dormant?

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Replying to Tax Dragon:
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By Mr_awol
18th May 2021 09:27

Quote:

the dormant company could eg have class 1A to pay on that non-income-producing freehold property.

And maybe ATED, for an almost clean sweep of taxes

(VAT is the main exception - i think the OP is safe on that. MGD and other duties can be ignored)

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By The Dullard
18th May 2021 01:57

Yeah It's fine. Don't sweat it.

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By Tax Dragon
18th May 2021 05:44

OP, just to make sure I understand what you're asking, because it sounds an interesting idea, is your plan to put everything into an unlimited company and then have the company not insure anything, not maintain anything and not repair anything... basically not do anything... in order to keep it dormant? Do you mind reporting back in a year or two, to say how it's going? What the pros and cons turned out to be?

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By paul.benny
18th May 2021 09:03

I think you still have to file accounts, at least for any years when assets are moved in or out of the company - see Companies Act s1169.

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By Paul Crowley
18th May 2021 09:52

Is someone asking what you own?
A bit improper to ignore the existence of the company.

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Maytuna
By DJKL
18th May 2021 10:17

Busy as I am these days dealing with being sued by an individual who walked over some land we own, tripped and injured themself, I have found the time here to comment that I am struggling to work out how one can sensibly hold land, let alone property, and not have some economic activity to show for it.

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Replying to DJKL:
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By CJS88
18th May 2021 12:45

Arkell v Pressdram?

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Slim
By Slim
18th May 2021 10:19

divorce?

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Replying to Slim:
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By Hugo Fair
18th May 2021 12:00

Quite possibly ... but proposed gifts are all into "a dormant company I own" - note the final two words!

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By More unearned luck
18th May 2021 15:17

"I fully understand the tax implications of gifting assets". I can't judge the veracity of your remark, but tax liabilities don't necessarily end with the gifting, as others have said. Less than three weeks ago the CoA delivered its judgment in Khan. Read, at least, the first four paras. https://www.bailii.org/ew/cases/EWCA/Civ/2021/624.pdf and consider if you need a second opinion (from someone with PII!) on the tax aspects.

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By I'msorryIhaven'taclue
18th May 2021 15:29

You need UK Business Forum, where a helpful bevy of accountants and other at-home consultants will be thrilled sick to field your questions.

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