Incorporate Holdings Company - Yay or nay?

[OddBall121104]

Hi all,

I'm sorry if this isn't the right area, I just didn't know where else to post this.

I'm currently considering incorporating one of the businesses I've been running for a while now. Having a couple of other businesses that I'll probably end up incorporating before the end of the financial year anyway, I'm debating whether or not to incorporate a holdings company for them all now, or do it in a couple of months.

As the sole owner (100%) of the businesses, if I incorporate the business I want to now, will I have to pay any fees to Companies House to transfer my ownership of the company to a holdings company I also own? If so, would anyone know the fees? I've looked on the Companies House fees page and can't see anything that would indicate there is a fee (or perhaps I've just missed it - I'm only human) but I'd rather ask here to be sure.

Thanks for the help!

 

[StevensOnln1]

I don't think Companies House charge any fees for recording a change of ownership, but you might have Capital Gains Tax to pay.

 

[OddBall121104]

I don't think Companies House charge any fees for recording a change of ownership, but you might have Capital Gains Tax to pay.

In what regards would I have to pay capital gains? I don't plan on "selling" the company to my holdings company, I just plan on "giving" it if you will.

 

[StevensOnln1]

By giving away your shares to a new company you are potentially undervaluing them. Seek advice from an accountant before going ahead with anything like this.

 

[Mark T Jones]

Are you sure you aren't over-complicating things?

Have you taken advice from an accountant?

Without knowing your personal circumstances, from experience most micro group structures are either vanity or bad (bloke in the pub) advice projects

 

[gpietersz]

In what regards would I have to pay capital gains? I don't plan on "selling" the company to my holdings company, I just plan on "giving" it if you will.

Giving something away can be a disposal, so you are liable for the same CGT as if you had sold it at market value.

I think this sort of thing is covered by an exemption or relief - but checking that and ensuring you do thinngs the right way for it to apply is why you need professional advice.

 

[Energise Accounting]

As Mark has mentioned is it necessary? What happens in simple terms is you give away share(s) of an existing company to your holding company. Then you receive a equal value of share(s) from the holding company. Creating a tax neutral position.

There are other ways of achieving the above however, a share for share exchange is probably the simplest but may not be appropriate in all situations