Home > Projects > Business Tax > Company Restructuring as part of Exit Strategy

The Problem

Our client had plans to retire from business and close down his two companies within three years.

The companies held two letting properties which he was keen to retain ownership over as he expected them to experience significant price growth in the forthcoming years.

Our client was unsure as to the most efficient way of transferring the properties into his personal ownership and was concerned about his tax liabilities, both on the disposal of the properties and liquidation of the companies

The Solution

We sat down with our client and formulated a plan to transfer the properties and wind-down the companies in a cost-effective and commercially beneficial way.

This involved inserting a new holding company with no trading history to which the properties could be transferred. Once all liabilities had been paid and remaining other assets had been transferred to the new company, the two businesses could then be liquidated/struck off.

We guided and supported our client throughout this process by liaising with HMRC, applying for necessary reliefs and corresponding with solicitors.

The Result

This restructuring enabled our client to retire from the business within the desired time frame in an economical and practical way.

Going forwards, he will be able to draw down rental income from the new company as dividends.

Some of the shares in the new company may be transferred into trust in the coming months, in order to start planning for Inheritance Tax.