Ltd Company queries

Barry Gould

Hi,

First of all, i am fairly new to company accounts and law, so be gentle with me.

I have 3 queries regarding companies.

1) The first one is a friend of mine, who has a small company that she now wants to strike off the companies house register. Their are no debts or liabilities within the company, and she does'nt want to keep the company dormant.

She is the sole diector, her sister was a director but resigned a few years ago. The query is they have a domain name and are paying hosting fees.

When they come to strike off the company, can they transfer the hosting fees and domain name to their personal account, so no one else can use the domain name. Would she need to speak to the person dealing with the hosting fees as well.

2) The second query is a client who has a seven year old son. The mum and dad as directors want to know if they can set up a Ltd company on behalf of their son, where they can buy a property for their son and rent it out, but be able to get a mortgage out abd pay both the rental income and the mortgage payments both through the limited company.

3) The third query another friend of mine, has two Ltd companies, he wants to strike off both companies, and set up one Ltd company for both businesses, both are solvent companies. If he could what would be the procedure for doing this.

Can he just choose an available new Ltd company name, and set this up. Obviously would have to sort out the other two in respect of filing last set of accounts, and collecting outstanding debts and paying liabilities.

Again their is an issue with the domain name etc on both businesses.

I know this is long winded, but would really appreciate some positive feedback.

Raging Pineapples

I think for something like this they would need to pay a business and taxation adviser

deanshepherd

Lots of issues but essentially..

1) Yes. Get hosting company to transfer to personal ownership. No problem.

2) Awful idea. Bigger tax bills.

3) Bit messy but not a problem. Consider market values for transfer of trade and assets as there may be a gain to declare in each company. Plenty of decisions to make as to how the transfer can be made to optimise the overall tax position. Could just change the name of one of the companies if that is the issue.

Jon1

1&2) agree with Dean

3) Assuming the companies are under common control and are trading, you should be able to transfer the trade and assets of one company into the other company under s343 ICTA 88. and no CGT will be payable. You can then just apply to Companies House and strike off the dormant company. Might be worth taking a look at the revenue manual on this- CTM06010.

What are the motives behind this? Yes, it should make the administration easier, but if they are clearly definable businesses then if might be worth keeping them separate - especially if they are looking to sell one of the trades.

Jon