I have a company in England, which owns four properties in Scotland. I would like to transfer these four properties into my husband's company in England. Can I do this as an asset transfer?
Arthur Weller replies:
You can do what you are proposing, but it will cost corporation tax for your company if there is any capital gain on these four properties, and it will cost Land and Buildings Transaction Tax (the Scottish equivalent of Stamp Duty Land Tax) for your husband's company. There is a cheaper way of doing things. Gift the shares in your company to your husband, then he can form a group containing your company and his company. Then the four properties can be transferred between the two group companies without any taxation.