04 February 2014
Demerger dilemma
What is the most tax-efficient way to demerge a property investment company?
A property investment company owns eight properties. The two directors, who are 50:50 shareholders, each want to transfer four properties into their own 100%-owned companies. This is purely for commercial reasons; they want to go in different directions.
The market value of each set of four properties is broadly similar (about £3m) and my question is how do we best effect this “demerger”?
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