Mr X owns 100% of Company A and 100% of Company B. Both are standard UK limited companies. Company A is VAT registered and has a loss making (-£20kpa) trading business and accumualted trading losses of £60k, plus financial investments of low 7 figures. Company B is not VAT registered and has financial investments of 6 figures.
There are no loans and no other features of the companies. They are now shells with cash accumulated from previous trading activities, which have ceased. The remaining small trading activity in Company A is from trying to start up a new business, but it hasn't taken off. In future, the combined entity would need be able to contain a trading activity, and cash which it can invest.
Can the companies be merged in any way to simplify accounting, and so that the owner does not incur a taxable event on selling the shares of Company B to Company A? Thank you.