Property business structure.

[larkfield]

Hi, so very briefly I have a ltd company which owns several properties. Most recently I have ventured into property development, naively, I didn't understand what risks this has put my company in.

I need to move my assets to some kind of holding company and carry on trading with my ltd company whilst ring fencing my assets.. any advice would be much appreciated.

 

[zomex]

Straight off the bat I am no legal expert so best to wait for that feedback here. But on first thought wouldn't it be possible to create a new LTD company for your development business and keep your houses within your existing company to create a separation?

 

[David Griffiths]

Given the sums likely to be at risk here, I think that it would be advisable to have proper professional advice based on your exact circumstances, and not rely on a group of mostly anonymous strangers on an internet forum.

 

[WaveJumper]

Yep you need proper expert advice you can't just transfer assets into a holding company that easily. As mentioned above if not in too deep set up another Ltd for your development side, but overriding all this seek some proper advice from you accountant.

 

[pentel]

you can't just transfer assets into a holding company that easily

I am very aware of this as I have tried!
You can however treat your existing company as the holding company and create a new company ( New Co Ltd) under it and carry out your development work through New Co Ltd.

 

[MikeJ]

I got the impression that the development work had already started in the existing limited company,and has got into trouble.

 

[Lisa Thomas]

Do you have an accountant? If so I recommend you take their advice specific to your circumstances. If not I can recommend one for you - feel free to dm me.

Please note that if your company/ies are insolvent then transferring out the assets for less than their market value will be classed as a transaction at an undervalue, and any future Insolvency Practitioner appointed will have the power to lift the corporate veil and pursue the director/s personally so it's essential to take great care and take professional advice on your plan.

I'd be happy to chat to you about this in more detail.