The impact of the Coronavirus Pandemic (Covid-19)
There is no doubt that the current trading environment continues to place considerable pressure on businesses.
We have a number of clients, that are concerned about the impact on their businesses and the knock-on effect on assets, e.g. property, that they hold.
Their concern is clear, if the trading business fails then their assets are at risk.
In a corporate environment steps can be taken to protect those assets by moving them into a separate company without incurring any adverse tax consequences (with HMRC clearance), and in some cases achieving a mark-up of their book cost to current market value.
A spin-off is that in those cases where eligibility for entrepreneurs’ relief has been compromised by investment decisions it may be possible to restart the two year clock in respect of shares held in their trading company.