Hi,
would appreciate some advice please.
my father and I have a company which is in trading difficulty.
We now owe revenue approx 20k, DETE (redundancy) 20k and my father personally approx 700k. Trading has stopped this month with no pick-up in the foreseeable future.
this is very dissapointing as there is an opportunity to generate trading income within the company and pay my father 700k tax free but unforunately, we cannot see a pickup in trade anytime soon.
so, assuming we cannot make a profitable business in the near future, was just wondering whether the following solution makes any sense?
can we sell company (with liabilities) and my father's asset (loan to company) to another business? We would sell the company for 1 euro and my fathers asset for a fraction of the 700,000 - taking into account liabilities of company etc ? This would allow another trading company with associated director to generate income at 12.5 percent and pay the director tax free out of profits... very advantageous i would think in the current climate of high taxes!!
i am not a financial whiz so dont know if anyone has done anything like this..
thanks,
rusty
would appreciate some advice please.
my father and I have a company which is in trading difficulty.
We now owe revenue approx 20k, DETE (redundancy) 20k and my father personally approx 700k. Trading has stopped this month with no pick-up in the foreseeable future.
this is very dissapointing as there is an opportunity to generate trading income within the company and pay my father 700k tax free but unforunately, we cannot see a pickup in trade anytime soon.
so, assuming we cannot make a profitable business in the near future, was just wondering whether the following solution makes any sense?
can we sell company (with liabilities) and my father's asset (loan to company) to another business? We would sell the company for 1 euro and my fathers asset for a fraction of the 700,000 - taking into account liabilities of company etc ? This would allow another trading company with associated director to generate income at 12.5 percent and pay the director tax free out of profits... very advantageous i would think in the current climate of high taxes!!
i am not a financial whiz so dont know if anyone has done anything like this..
thanks,
rusty