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No actual sale

22 November 2011
Issue: 4331 / Categories: Forum & Feedback
A UK trading company, which is the subsidiary of a US company, owns and occupies a freehold property. The UK company is to be sold to another US company, but it does not wish to take ownership of the property

A freehold property is owned and occupied by a UK trading company. The company is wholly owned by a US company which has four shareholders one of whom is UK resident and domiciled. It is intended that the US company will be taken over by an unrelated US company which does not want to retain the UK freehold property.

There is a substantial potential capital gain on the freehold property which it is intended would continue to be occupied and used by the UK trading company. A transfer to a new US company with the same four shareholders would trigger an immediate chargeable gain.

As an alternative approach if a new UK company was formed for the same purpose with the property leased to the existing UK trading company a transfer ‘within the group’ would be currently free...

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