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What are the implications of transferring business premises to a ‘new’ company?
We act for a client company which incorporated in May 2015. However the business premises valued at £2.5m remained within the previous partnership which ceased trading on incorporation.
The partners/directors had in mind to sell this property and purchase alternative premises. The company found a suitable site and incurred £75 000 in preliminary expenses as follows:
- Valuation fees: £8 000
- Bank loan arrangement fee: £15 000
- Professional fees (survey costs legal fees and consultancy fees): £52 000
Reluctantly the partners/directors had to accept that there was significant risk in the project and they abandoned it deferring any move until they were in a better financial position. Meanwhile they have carried out extensive work on the existing property which they now want to transfer into the company. My client has the following questions:
- What...
