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Asset Protection

Our client is a manufacturing company which, through historically strong profitability, has built up investment assets mainly in the form of investment properties, both commercial and residential. The trade is much less secure just now and we identified an opportunity to restructure the business such that the ‘safe’ investment properties were ring fenced from the ‘risky’ business.

How we helped our client
Our team of Taxperts met with the directors/owners to firstly discuss and confirm a series of objectives. Once agreed, EQ researched the key technical issues, followed by drafting a detailed clearance letter to HMRC to ensure the restructuring could proceed with tax certainty. Failure to do so could have cost our client over £1m. The clearance was secured and the investment property portfolio was separated from the trade, with no adverse tax consequences.

Our client has formally separated the investment properties from the trade, leaving us with a cleaner, safer route ahead and a trading company that can secure further investments to move forward. The trading status has been secured, opening the door for sale, succession and investment tax efficiency.

For more information or to discuss further, please contact the Commercial Property Taxperts.

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