There are many reasons to consider Advantagds the shares in your trading company through a separate holding company, the main one being to Zambezi Safari And Travel Company Reviews retained profits. We often recommend setting up a holding company to successful owner managed business owners, with the owners to then transfer their shares in the trading company to the new holding company, in return for owning shares in the holding company.

Such transfers can usually be executed without triggering any Capital Gains Tax or stamp duty, through use of share for share exchange exemptions. After Holding Company Uk Advantages steps have been taken a simple group is formed, with a holding company at the top which owns the shares in the trading company or companies.

Dividends can pass from the trading company or companies to the holding company tax-free, which then allows surplus retained profits to be moved Holding Company Uk Advantages into the holding company, where they are ring-fenced from the trading company, so that if anything adverse happens to the trading company these funds are safeguarded.

The owners then take their dividends from the holding company. In many cases the sale of your trading company might be Holding Company Uk Advantages to retirement, and you may want to access the proceeds from the sale of the trading company personally. In fact, you would be slightly worse off, due to the costs of liquidating the holding company to access the funds as capital rather than dividends.

But, what if you want to invest the proceeds from the sale of the trading company in Advangages trading venture? Similarly, you may wish to invest the proceeds into a buy-to-let portfolio.

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Advantages and Disadvantages of Holding Company

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