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bigduckontax
bigduckontax, Accountant
Category: Tax
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Create a new holding company

Customer Question

Create a new holding company

Please advise me on this.

The UK based company has 5 shareholders. Those 5 shareholders want to transfer their shares to a Turkish company so that the Turkish Company then owns the UK based company. The same 5 shareholders will become the shareholders of the company in Turkey.

Can you please explain the procedure UK:

Stock transfer form signed by the shareholders?

Where do they submit this stock transfer form? There is no consideration for transfer, its a share for share exchange...will there be any tax implications for HMRC (stamp duty, CGT)? At

Turkey side: what is required, if you know would be good.

Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Each shareholder must sign a Stock Transfer Form. This form is maintained by the company for its records. There is no stamp duty payable on these share transfers. CGT is payable by each shareholder on the current market value of the shares less the acquisition price of the individual shares. Each shareholder has an Annual Exempt Amount (AEA) of 11.1K to offset any gain, but if the company has not traded there is no gain anyway. Just Answer is essentially an UK tax advice site, but you may find PWC's analysis helpful: https://www.pwc.com.tr/en/.../ttk-a_blueprint_for_the_future.pdf Turkish companies holding shares in UK companies is a perfectly normal activity in that country, effectively just like the UK. I do hope that my reply has been of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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