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Transfer of land into new SPV

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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?

Kind regards

Daniel

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