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Holding company setup any need for clearance?

proposed share for share exchange, £100 shares to be transfered to the holding company

i know its not mandatory for companies to apply for the clearance.

Transfer value is £100 so shouldnt have any stamp duty implications and the planned reorganisation applies equally to the holders of the share being exchanged so no capital gains

is there any need for the clearance? am i missing something




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By Ruddles
12th Jan 2018 17:08

If you're satisfied that the value is in fact £100, then I'd say that clearance is wholly unnecessary. Unless the shareholders have fully utilised their annual exemptions and are the sort that would complain, in the unlikely event that HMRC were to deny share-for-share treatment, about having to pay £20 in CGT.

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to Ruddles
12th Jan 2018 17:35

The important word being "value".

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By stig247
12th Jan 2018 17:48

Thanks for the replies

The shareholders have not used up the annual cgt allowance so the £20 tax shouldnt be a issue

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