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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4198
Experience:  FCCA FCMA CGMA ACIS
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I am an ICT Consultant and my Ltd Company is doing quite

Resolved Question:

Hi - I am an ICT Consultant and my Ltd Company is doing quite well. I want to diversify and I have set up a new Ltd Company, with my ICT Consultancy Company the sole shareholder (does this make it a subsidiary?).
I want to use this Company (subsidiary) to purchase Ltd Company buy-to-let Mortgages and I want to use my profits from my ICT consultancy as finance.
Of course I will have to pay Corporation tax on the profits I earn from my ICT company, but is there any penalties for transferring it from my ICT company to Property Management company (subsidiary). Thanks
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. You have now formed a company group. You can certainly use your new company to buy another. There are no CT problems associated with inter company transfers. Any losses for Corporation Tax (CT) made by a company within a group can the transferred upwards, downwards of sideways within the group to relieve profits elsewhere or, alternatively, carried forward. 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.