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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am contacting you as I wish to purchase a company but before

Resolved Question:

I am contacting you as I wish to purchase a company but before I proceed I need to decide on wether it is best to go with either the asset or share sale route after considering the tax implications.
The details on each option are below along with my questions:
Asset Sale
Purchase price is £100,000 so I would start a new company and loan it £100,000 from personal savings and repay the loan at later date.
Would I need to pay VAT on the purchase price and could I charge interest on my personal loan to the company?
Share Sale
Purchase price is £140,000 which includes £60,000 of cash in company bank account.
If I draw £60,000 of cash out on day one what are the tax implications?
And finally when you compare the financial ramifications of each option which do you think will work out best for me in the long term?
Regards Jonathan
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
my number is ***** 977048
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your questionPlease advise me on what is involved .. is it a going concern?Many thanks
Customer: replied 1 year ago.
that seems very expensive after I have just paid for top rate service, would expect it to be included?
Customer: replied 1 year ago.
yes it is a going concern, company has been operating for 34 years
Customer: replied 1 year ago.
happy with written answer
Expert:  taxadvisor.uk replied 1 year ago.
Thanks for your reply...I can only provide you advice in broad terms ..What assets will you buy to run the business?Many thanks
Customer: replied 1 year ago.
it is an estate agents, so assets are minimal such as trading name, client database and existing contracts.
Expert:  taxadvisor.uk replied 1 year ago.
Thanks for your reply.I will revert to you shortly. Many thanks
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your patience.Please see attached document for my recommendation. I hope this is helpful.
Customer: replied 1 year ago.
thank you, ***** ***** to discuss this further by phone, are you available now or soon?
Expert:  taxadvisor.uk replied 1 year ago.
yes, i am available
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.Best wishes.
Customer: replied 1 year ago.
please call me when convenient
Expert:  taxadvisor.uk replied 1 year ago.
done

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