We assisted a substantial UK trading company in restructuring its corporate affairs to enhance asset protection. The business, in addition to its core trading activities, owned the commercial property from which it operated. The directors were increasingly concerned about potential future claims against the trading company that could put valuable assets particularly the property at risk.
To address this, we advised on the creation of a new group structure. A holding company was inserted above the trading company, and the commercial property was transferred to the holding company via a hive-up process. This restructuring effectively ring-fenced the property assets from trading risk.
The process included securing HMRC clearance and working closely with corporate lawyers to draft and implement the necessary legal documentation. The property transfer was executed without triggering Capital Gains Tax or Stamp Duty, making the restructure both strategic and tax-efficient.
