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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13884
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Kathryn, My business is in the recruitment and executive

Customer Question

Hi Kathryn,
My business is in the recruitment and executive search business so there are no real assets. just people, computers and database.
I am considering a sale of my Czech company to the UK company and having the UK company then act as the the holding company or group company.
There are a number of beneficial reasons to do this from the Czech end which I have already sought accounting and legal advice.
One of the primary motivations for doing this now ( selling my shareholding/ownership of the CZ company to the UK company) is that now I have owned the Czech company for more than 5 years any monies I receive from the sale of my shares is tax free.
It will also make the business in Czech and Poland look more substantial and prestigious.
Thirdly - being the owner of the Czech company exposes me to ultimate liability(change in law last year) in the event of a law suit and the costs of indemnity insurance are considerable here and I have not been insured until now.
The Czech company has had a revenue of 400-600k euros each year for the least 5 years with minimal profits as utilise other businesses in the portfolio to provide services.
I do also own an offshore company (Belize) that could also be the ultimate holding company of the UK company and subsidiaries.
I am seeking advice on the above from a transaction and tax perspective.
Note:
I am the sole owner of all the companies.​
The UK company does not have the funds available to pay for my shareholding
I want to increase tax efficiency and not to raise my costs of doing business substantially.
I want to process the transaction as soon as is practically possible based upon best advice.
Once this has been accomplished I will seek advice perhaps from the same professional then on the ideal structure.
Thank you
Regards
Justin
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Hi

Thanks for your post and I am Sam one of the UK tax experts on Just Answer (there is no one called Kathryn that specialises in UK tax)

Perhaps you could actually state what it is you wish answered - as whilst you have provided a plethra of information - if you plan to sell then the UK tax position has no bearing on you - or what was your Czech company at all.

If the UK company in fact will take over the Czech company - and you will be the sole director of the Uk company - then please could you state what information you require in terms of the UK tax jurisdiction as this is a vast subject and cannot possibly all be covered through a Q & A situation, which I am sure you can appreciate, so it would be useful to know what specific tax questions you have

Thanks

Sam

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