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Where Taxpayers and Advisers Meet

Transition Partnership to Ltd Company with a shop/flat

LinHew
Posts:2
Joined:Sun Feb 19, 2023 12:33 pm
Transition Partnership to Ltd Company with a shop/flat

Postby LinHew » Mon Mar 06, 2023 9:23 pm

For 100+ yrs my family had a greengrocers including a shop / flat above. For 30+ years my father and uncle ran the business as a partnership although we can't find any of the original partnership documents.

The business stopped trading as a greengrocer a number of years ago. Although they still have bookkeeping/earnings from renting the shop and flat separately.

They would like to transition to a limited company if this could be done without attracting Capital Gains / Stamp duty. They would then like to appoint other family members as directors going forward (next of kin) with varying shares to manage the income into the future.

Their aim is to protect the property and income from having to be sold to pay for death duties should one of them die, and to separate the property from personal assets, due to the criteria for claiming home help support as one of them has progressive Parkinsons disease.

Would really appreciate some advice on if this is feasible, and who best to approach to help set up, no idea how much this would cost, as they don't have significant amounts of cash.

billypiper
Posts:114
Joined:Wed Aug 06, 2008 4:10 pm

Re: Transition Partnership to Ltd Company with a shop/flat

Postby billypiper » Tue Mar 07, 2023 10:26 am

The transfer to the company will incur a Capital Gains tax liability.

billypiper
Posts:114
Joined:Wed Aug 06, 2008 4:10 pm

Re: Transition Partnership to Ltd Company with a shop/flat

Postby billypiper » Tue Mar 07, 2023 10:30 am

The use of a discrectionary trust may be appropriate in this respect where the transfer is free of tax

The trustees can be other members of the family

Dennis

Taxesclear Ltd
07802704840

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: Transition Partnership to Ltd Company with a shop/flat

Postby bd6759 » Tue Mar 07, 2023 11:27 pm

Unlikely to avoid CGT this way. The business seems to have ceased.


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