jsm tax

Group Structures

A group structure can allow for protection and tax efficient utilisation of trading profits for investment.

Where you own multiple limited companies it can often be beneficial to structure this as part of a corporate group. This would mean that rather than you personally owning the shares in each individual company, you would only own shares in the holding company, and the holding company would own the shares in the subsidiary companies.

Here are just some of the potential benefits:

  • Protection of assets: cash and other assets can be moved out of the trading company and ring-fenced.
  • Losses: where a member of the group makes a loss, this can be offset against profits within another group company.
  • SDLT: properties can be moved within the group without attracting SDLT.
  • Tax free trading business exit: utilising the substantial shareholders exemption can allow for a tax free sale of a trading subsidiary.

 

To find out more on how a group structure might be suitable for you, schedule a call today.