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How to account for sale of company

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My client has company A ltd which he deposits cash into and I account for this in the DLA. They also have B ltd and C ltd which A ltd has majority shares in. They transfer the money from A ltd to B ltd and C ltd to fund things like stock and purchase of rental properties. They have recently sold C ltd so have received cash in the bank of A ltd for this. They have then transferred this cash directly to B ltd. I assume this all has to go through the P&L as income in A ltd and be subject to corporation tax? Is there any tax relief available for this?  


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By zarar
26th Jun 2019 00:25

How was it sold? Were the shares sold?

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26th Jun 2019 06:24

There's not a lot of point posting that anonymously, since you'll have to engage in discussion to explain the situation more clearly if you want anything like a relevant answer.

Tbh, in order to get a relevant answer, you'll probably need to go through the accounts with someone to explain what is where. You might as well save us and yourself time and find yourself a local corporate tax advisor now.

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27th Jun 2019 17:36

If the "cash in the bank" A Ltd has received is the proceeds of sale of its shares in C Ltd it will have a profit or loss on a sale of its shares to account for.

If it's a profit, check whether SSE exempts it from corporation tax.

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