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Transfer subsidiary out of holdco

Non-resident company owns shares in a small UK property investment co. Here's the issue:

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French company owns 100% shares in a small UK property investment co.  Here's the issue:

FrenchCo is owned 100% by Mr A, also a resident of France.

FrenchCo owns 100% shares in small UK property rental/investment company (my client).

Mr A wants to transfer UK company to his son.

I will be advising client that specialist advice is required.  It got me thinking though!

I would imagine that there are lots of pitfalls / considerations. 

Broadly, could the the FrenchCo transfer the UkCo back to Mr A as a market value disposal / dividend in specie?  Then gift the shares to his Son?

Or would a purchase of own shares by the UK Sub, then Mr A buys shares?

Just food for thought (for me) as I've never come up against this before.


Replies (3)

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By Wilson Philips
25th Aug 2020 14:33

You don't say where the son is resident but for starters I'd say that you are looking primarily at French tax and company law, in respect of which I would not even begin to advise.

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paddle steamer
25th Aug 2020 14:47

Je ne sais rien

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By Manchester_man
26th Aug 2020 04:02


I have now emailed the client and advised him that it is a specialist area and to run it by the French advisers.

It sure made my head hurt thinking about it!

Thanks again.

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