Client Mr A buys B Ltd from a 3rd party. The buyout is over 12 months. The initial payment is part funded by A, part by cash in B Ltd. Future payments are all made from B Ltd's cash.
This has created a significant s455 liability; whilst the client understands the "the company's money isn't mine" principle, for some reason he's struggling with regards to a company purchase.
This has happened with multiple companies over the past year and will continue in the future.
Co-incidently, A also owns A Ltd, a UK holding company and A2 Ltd, a Malta holding company.
1. If A was replaced with A Ltd in the above scenario, presumably there'd just be a large intercompany with no tax charge.
2. A is a domiciled non-resident and passes all of the UK ties tests. I can't see it anywhere in the guidance, but does his ownership of multiple UK companies (10 and counting) come into affect anywhere? NB he is a director of none, although it could easily be argued a shadow director of all of them.
3. Assuming #2 is still non-resi, can anyone think of a reason why he would own the shares personally, rather than through his UK (A Ltd) or Malta (A2 Ltd) holding companies?
4. Would you advise to hold the shares in the UK or Malta holdco?