Hello Accountingweb community,
I wonder if you might share your thoughts on a matter.
I have a client who owns a limited company, which owns land (cost £36,000 some years ago).
A developer has approached my client interested in working together to build properties on the land. The property developer has suggested that my client creates a new limited company (SPV) owned 50:50 and transfer the land into it. The property developer will buy his share of the new business for £36,000.
Are there any tax implications associated with this transfer?
SDLT on Newco
Capital Gains tax on Currentco - does the land need to be valued to establish Market Value and then attract CGT (/ Corporation Tax because it is a limited company)
The new company is not a subsidiary of the current company.
Any other thoughts or suggestions?