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Splitting trade in Limited Company

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Our client has two trades in his limited company which he wishes to split into 2 companies to enable him to pass on a company to each of his sons. What is the most tax efficient method of setting this up? 

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By stepurhan
03rd Sep 2021 12:35

Hire in expert advice on the matter?

You are literally asking for free advice on a not at all simple transaction. You aren't even providing any detail, even though many details are likely to be relevant. This is a forum for accountants to help each other on specific queries, not do wholesale valuable tax planning.

If you don't know how to do it yourself, and you either can't do actual research yourself or don't see it as worthwhile, subcontract to someone that does know how to do it. For the avoidance of doubt, a two sentence question on a free forum is not research.

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By paul.benny
03rd Sep 2021 12:36

There's no shame in admitting that a piece of work is beyond your skills and experience and referring it on to someone else.

You almost certainly need to do that here.

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By Duggimon
03rd Sep 2021 12:41

The most tax efficient way of setting it up is paying someone who knows how to set it up tax efficiently.

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By Dib
03rd Sep 2021 12:49

Probably a reorganisation followed by a demerger but there are a lot of ifs and buts that would need to be sorted by the provision of a lot more information (and not on a free forum).

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By SteveHa
03rd Sep 2021 12:57

Oh dear. I do stuff like this regularly, and the advice is never quite the same for any two clients. Instead, the advice is tailored to their specific circumstances and requirements, and is charged for accordingly.

I suggest that you find someone who will charge you, and will do the job properly and thoroughly, in order to offer the best advice for YOU.

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