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Are shareholders obligated to extract cash when a business ceases?

Andrew Marr (Forbes Dawson) sets out some tax efficient options for three shareholders who wish to go their separate ways.

Question

 
Three shareholders subscribed £1m of capital in a company (Investco) which was set up to invest in property. After about three years the property had been acquired rented out and sold. The company ended up holding funds of approximately £1.8m after having paid tax on its profits. At this stage each shareholder wishes to go his separate way and to use ‘his’ share of Investco’s profits in his own company going forward. How can they best achieve this?
 

Answer

 
We have advised on a similar situation and recommended that the best way of achieving this would be for companies owned solely by the individual shareholders to respectively acquire shares...

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