My client company has a commercial property that is currently been rented out, it has a small mortgage on it. He would like to set up a subsidiary, 75% owned by his company, 25% owned by another investor, pay off the mortgage and transfer the property to this subsidiary. The investor would put in some funds to help develop the property. The idea would be to knock down and develop the property into residential housing and then sell the houses.
Are there any HMRC clearances or other tax implications my client should be aware of when transferring the property?