Combine two Ltd. companies

[ben9823745]

I have two limited companies. Niether tbh are doing very well and looking to combine the two.

If I want to have just one limited company what is the best way to do this? Can I just sell the business and assets of business 2 to business 1 for a £1, and then transfer the money I have in business 2's bank account into business 1's bank account?

An accountant has told me that I can transfer the money from business two to business one without any tax implication, provided I then keep business 2 as a dormant company. Within the accounts this would then be shown as an intercompany loan.


Any thoughts?

 

[Ozzy]

An accountant has told me that I can transfer the money from business two to business one without any tax implication, provided I then keep business 2 as a dormant company. Within the accounts this would then be shown as an intercompany loan.

Don't do this, it's messy. I assume it wasn't your accountant who gave you this advice.

Can I just sell the business and assets of business 2 to business 1 for a £1

Do this, but not for just a £1. It will need to be for a fair value, and there are ways you can structure this in the most tax-efficient way possible. I would recommend speaking to an accountant, if you don't have one there are a few on here who would be best placed to help with this - and support you going forward.

 

[ben9823745]

Don't do this, it's messy. I assume it wasn't your accountant who gave you this advice.


Do this, but not for just a £1. It will need to be for a fair value, and there are ways you can structure this in the most tax-efficient way possible. I would recommend speaking to an accountant, if you don't have one there are a few on here who would be best placed to help with this - and support you going forward.

Do you have any acountants you can recommend?

 

[Ozzy]

Do you have any acountants you can recommend?

Have a look through some other UKBF members here;

UK Business Forums

www.ukbusinessforums.co.uk

 

[Lisa Thomas]

If neither business is doing very well, can I ask why you think merging them will solve those issues?