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Nick H
Nick H, Solicitor
Category: UK Law
Satisfied Customers: 110
Experience:  Ten year qualified Solicitor
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We have a limited company with a trading business and two

Customer Question

we have a limited company with a trading business and two properties we want to hive up and move the properties to a new company
JA: Are you in the UK or are you in the States?
Customer: uk is this possible? so when we sell our trading business we then can sell the company
JA: What action has been taken so far? What's your ideal outcome?
Customer: we want to keep properties but eventually sell the business
JA: Anything else you want the lawyer to know before I connect you?
Customer: because the nature of buisness normally requires company sale rather than as business alone
Submitted: 12 days ago.
Category: UK Law
Customer: replied 12 days ago.
basically can we hive up to move property into new ltd company,
then eventually sell the current company as the trading business
and what are the costs invoovled
and is there tax implications
thanks
Expert:  Nick H replied 12 days ago.

Hello

The transaction will be a straightforward transfer of property as if from person to person.

Unless you sell shares from one company to the next - i.e. all the shares.

The tax will come in the form of stamp duty and there may be capital gains.

Customer: replied 11 days ago.
My understanding of hive up was a intra group transfer of asset to new company, with a hive up agreement?Did not realise it would basically be like a sale again?so, basically it is like a sale except there will be no transfer of money but transfer of asett? which will levy stamp duty.once the property is transferred to new company (which has the same shareholders as the original company ) the original company with the trading business can be sold as a ltd company?
Expert:  Nick H replied 11 days ago.

Hello

If you are transferring property for nil consideration then no stamp duty is payable.

Thereafter the new company can be sold in the usual fashion.