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Cessation of property business in companies

Cessation of property business in companies

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Hello,

If a company has a property business and investment business, and it transfers all of it's property to another group company, I understand that that transfer brings to an end an accounting period. There will then be a second accounting period to the end of the company's period of account, consisting of just the investment activity (assuming it continues to manage investments). The management expenses would then need to be split between the two periods, presumably on a time basis.

Even though the property has been transferred to a fellow group company, I understand that balancing allowances will arise on any capital allowance pools (once market value/proceeds are taken to the pools) and that there is no mechanism to transfer the pools with the properties (as there would be were the business a trade).

I'd be grateful if you guys could offer your thoughts - does this all sound sensible?

Cheers

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By aidious
14th Jan 2016 19:57

Any thoughts guys?
Cheers

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