We have a DIY client (you've met these) who has a trading company and has set up a "holding company" that doesnt hold any shares in the trading company?
Our client though has been succesful in their chosen trade and have been offered £500,000 to sell up. The company has £200,000 in the bank and £250,000 of commercial (mortgage free) property on the balance sheet. Our client would like to sell the trading company, claim ER and have the cash and property transferred to the "holding company".
My plan is create a small B holding in the trading company, sell this to the other (holding Comp), dividend the cash via B shares to the other co, and dividend the property in the same way, then sell the remaining company less its assets. Does the dividend in specie avoid any SDLT on the property, what value would be applied to the property on transfer.