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Tax on Asset transfer 100% common shareholding

Tax implication transferring trade & assets between 2 small UK companies with identical ownership.

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Specific situation is that Company A has been trading for 8 months. The balance sheet currently has intangible assets (website/system development), loan, and a small bank balance. The company is now seeking investment, however the SEIS qualification will be more involved as Company A has been registered for 8 years, and although dormant for the full 8 years,  the owner wants to change the company name to better align with the new trade. Cleaner to transfer the trade/assets to Company B.  Question is will this give rise to a chargeable gain or can the transfers be at no gain/no loss.  Both companies will have idential ownership. 

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By David Ex
04th May 2022 10:27

You would be best advised to seek professional advice.

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By Michael Beaver
05th May 2022 09:51

I would also get expert advice on the eligibility for SEIS. The time limit for applying for SEIS follows the trade, not the entity. So if the trade is older than 2 years, even if it was trading via a different entity, it may fall outside of eligibility.

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