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waqqas memon
waqqas memon,
Category: Tax
Satisfied Customers: 17
Experience:  Senior Manager at MMBA Accountants
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I am wanting to speak to a tax advisor with experience in

Customer Question

Hello,
JA: Hi. How can I help?
Customer: Hello, 
I am wanting to speak to a tax advisor with experience in limited companies operating in the property industry. 
I have two companies registered at the moment: 
Latitude Living Ltd: Running for 3 years, currently holding a portfolio of properties on company let / lease agreements. 
Latitude Living Sourcing Ltd: Currently selling property deals for a fee. Otherwise known as a property sourcer. Similar to an estate agent, but we charge our fee to the buyer instead of the seller. 
I have been advised in my property network to set up a holding company to hold any future companies I incorporate, but wanted to seek further advice before taking any action.
I would ideally like to put the two companies above into my holding company, but was informed this could incur tax penalties. Is this true?
 
Right now, I am sourcing property deals regularly with 2 other individuals separately and need to know whether setting up 2 new limited companies with both of these individuals would be a good idea.. 
Or would it best if I set up another sourcing company myself, held via my holding company and then advised them to set up their own limited companies and we can transfer fees seperately, instead of being directors of one company. 
Some information around this and the tax implications involved with both options would be great.
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: No
Submitted: 13 days ago.
Category: Tax
Expert:  waqqas memon replied 13 days ago.
Hi, my name is ***** ***** happy to answer to your query. Am I correct in understanding that you wish to create a group of companies and include the two companies you already have within the group as well? you can form a group without incurring a tax charge as long as the shareholding in the holding company is same as the individual companies.
Customer: replied 13 days ago.
Hi Waqqas,Yes, I would love to create a holding company and include the two companies I have already, but one has been established 3 years and the other nearly 18 months, both registered in my personal name.I also have 2 more joint ventures with different people, and I was thinking about setting up new companies with both of them. So I would have these 2 new companies to add to the holding as well.But would this be a bad idea in terms of tax?Am I better off having less limited companies?
Expert:  waqqas memon replied 13 days ago.
You can form a group without incurring any taxes if it is setup using the correct exemptions which I can help with. Setting up a group has its own advantages and if you have a number of different companies then it is more often tha not more beneficial to have a group structure. Let me know if you need further information. Thanks
Expert:  waqqas memon replied 12 days ago.

The number of limited companies does not matter so long as there is an appropriate reason for forming them.