Divide to protect

Our client had been operating successfully in the building industry for many years, during which time he had built up a valuable portfolio of investment properties.

Seeing together that there were tough times ahead for the building industry, we started to plan how to protect the investment portfolio.

Following consultation, we advised that the property portfolio should be moved into a separate limited company, away from the commercial building activities to create two financially independent entities.  We then helped the client form and successfully transfer the properties into a new company without incurring any tax payments.

Subsequently, the client was able to transfer shares from the building company to other family members involved in the business operation, without creating an Inheritance Tax or Capital Gains Tax exposure.  This allowed the client to freely deal with the passing down of his property portfolio independent of the transfers. 

Peter Hedgethorne, director, said “We were very pleased with the result that we achieved for this client.  We were able to successfully divide the client’s business into two independent companies without incurring additional tax liabilities.  The client is now free to concentrate on his building business and deal with his investment portfolio as he wishes.”

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