This one is driving me insane. An intra-group transfer of trading stock. s166/s167 don't apply(I believe), company continues to trade. What is the value of transfer? Initial acquisition or MV? Only find case law on transfer of Capital Asset in A to trading stock in B. New Angel Court ltd. Grrr. Thanks
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Can I suggest you drop this one on AWeb? On a Monday when even the scary ones are being helpful, as opposed to a weekend when they are all asleep or a Friday when they are drunk in a corner and looking for easy pickings! (It is such a giggle!) lol
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
All good here Johnny, keeping busy and (mostly) out of trouble. Yer right on the latter! Great to hear you have been busy, in a way, but dont be a stranger, we miss you! Did you sort it? Was half expecting to see you lurking on AWeb!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I fancied a challenging question, so I spent all weekend trying to figure it!
After reading CTA 2009/2010, until my eyes started bleeding! I figured that MV could only be used. If the asset was stock in A and transferred to B as a capital asset there is more leeway - hence the Angel Court Ltd case law.
Then there is the CTA 09 s166/s167 election, but A would need to be ceasing.
There was then the Sharkey v Wernher case, ruling out transferring stock to capital in A, to transfer over to B on a no loss, no gain basis TCGA s171 <(If IIRC) Not being a 'normal trading transaction'
There is also, dependent upon the size of the company the potential for domestic transfer pricing to come into play.
Ultimately I was looking at shifting it at the purchase price.
Pondered the Companies Act - s582 Shares allotted by a company, and any premium on them, may be paid up in money or money's worth - that sounded interested.
Which left, in my opinion, a share for share exchange - which is a hot potato in the eye's of HMRC. But I think a share for share would be the only way. One of those I expect you'd need clearance, in writing, from HMRC.
It was an interesting weekend :)
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
