Has anyone noticed a different stance from HMRC regarding share for share exchanges over recent months?
I have prepared several over the years, stating that for commercial reasons single Ltd co would like a holdco to transfer surplus assets to protect from general trading risks, this has never been questioned, they have refused one and asked similar queries on another (awaiting reply).
A sample of their replies are below:
- How will this benefit the sub?
- Provide a detailed list of the assets being transferred
- what activities will holdco undertake other than holding shares in sub
- Are there any impediments to shareholders in sub taking a dividend and reinvesting in their own corporate as they see fit
- Protection of assets is not a commercial reason
Even after answering the above on one case, they have refused the application.