Corporate restructuring of a commercial property portfolio

Our client needed solid advice on the restructuring of their business and property portfolio to protect their assets. Hawthorn Tax was able to do this on a tax neutral basis using their extensive experience of tax legislation and in-depth understanding of the property sector.

Investment portfolio

Commercial Property

We had a client approach us with a commercial property investment portfolio worth several £million with a long history of investment in central Scotland. Having used a well-established traditional accountant for about 40 years, they came to us because of our reputation for excellent and robust tax advice in solving complex problems.

They came to us because they had an issue in that their commercial property investments were held within a trading company and they were concerned that should their high-risk trading activity run into trouble, their investments would be exposed.

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How We Helped

We assessed our client’s position and advised on the creation of a group structure with a holding company (by way of a share-for-share exchange) along with separate investment and trading subsidiary companies. By using our significant experience and knowledge in corporate restructuring and tax law we were able to transfer all of the investment assets out of the trading company into the investment subsidiary on a completely tax neutral basis – ie not crystallising any LBTT (Scottish equivalent of Stamp Duty Land Tax), capital gains or VAT charges.

Results

Our client had been stressed about the exposure his portfolio was under and the impact it would have on him and his family should that risk be realised. He was overjoyed at having this major headache resolved and the freedom this gave him to pursue further opportunities.

Testimonial:
“Hawthorn Tax quickly understood the issues that I had and acted quickly to provide the advice we needed to put a robust structure in place to protect our assets. In addition to the quality of the advice, one of the things that impressed me most was the understanding and awareness of the commercial issues around property investment and how that helped to make the transition to the new structure as smooth as possible”.
The successful completion of the restructure has safe guarded millions of pounds worth of assets for our client and the next generation of his family.

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