Pete Miller answers a query about the taxation of demergers
Question:
My client owns a company which carries on a retail trade. The company also owns the premises through which the trade is carried on. My client is keen to separate the trade and the property asset for a number of reasons; partly for commercial protection so that a downturn in trade will not jeopardise ownership of the property; and partly on the basis that as he nears retirement he would like be able to sell the trading company but perhaps retain the property as a source of investment income in his retirement. Ideally my client would like the property and the trade to be in separate companies both owned directly by himself.
Answer:
This is a common query. There...
