Paul Howard answers a query about the sale of shares on retirement
Question
Our clients Mr and Mrs Mortimer hold all the shares in a trading company Mortimer Ltd which they formed in 1995. It continues to be profitable and owns some valuable plant and machinery although it is not taking on new contracts. Mr and Mrs M formed a trading company (Mortimer Services Ltd) with their son in 2004 holding the shares equally and it is this company which is developing into a very profitable business. The trades in the two companies are complementary with the new company providing many of the services that are also provided by the older company. Mr and Mrs M want to reduce their involvement in the businesses and to begin this process they have proposed that Mortimer Services Ltd (‘Services’) buys...
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Paul Howard answers a query about the sale of shares on retirement
Question
Our clients Mr and Mrs Mortimer hold all the shares in a trading company Mortimer Ltd which they formed in 1995. It continues to be profitable and owns some valuable plant and machinery although it is not taking on new contracts. Mr and Mrs M formed a trading company (Mortimer Services Ltd) with their son in 2004 holding the shares equally and it is this company which is developing into a very profitable business. The trades in the two companies are complementary with the new company providing many of the services that are also provided by the older company. Mr and Mrs M want to reduce their involvement in the businesses and to begin this process they have proposed that Mortimer Services Ltd (‘Services’) buys...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
