Several years ago while living in Scotland i have set up a limited company so the company is registered there. Since then i moved to England and bought a property throught the ltd in addition to other income streams. I am now intending to add another income stream and buy another property through the business but would really like for it to be registered in England. Since i can’t move registered address from Scotland to England i am exploring other options which would let me transfer business assets into a new English Ltd but not be too costly (like having to sell property from one to the other and incurring stamp duty). Up to now it didn’t really cause any issues apart from extra cost for Scottish registered office but in the future, if corp. tax rates become different in Scotland vs England (for now they are the same) or other implications arise following brexit it seems like a good idea to make the change now rather than buy another property and suffer the consequences later. (property is the main issue here, other income streams are easily movable to a new entity).
Is there a way to transfer assets to a newly set up Ltd in England that is not too costly and then dissolve the Scottish entity if needed?
You could get tax clearance pursuant to section 139 of the Taxation of Chargeable Gains Act 1992 whereby the UK company would receive confirmation from HMRC that the business transfer would not incur any tax charge.
Please get in touch with us via our contact form on our contact page if you would like to set up a no cost no obligation 20 minute call to discuss your matter. Without knowing any further information at this stage, for advising on, putting together the documentation, and applying for tax clearance our fees are likely to be £2,000 to £3,000 plus VAT.
Once you’ve got the comfort of the tax clearance you could effect the transfer with a simple agreement and board minutes, then easily strike off the Scottish company (if no creditors – no need to go through any insolvency procedure)
Thank you so much for your reply Jonathan, i have now applied to set up an Ltd. in England. Will contact HMRC and see what they say regarding tax clearance, i might need some help with this in which case i will let you know.