Why set up a holding company?
Ring-fence key assets of the business
We have inserted holding companies for a number of our clients to protect a range of assets, including property, plant and machinery, cash, intellectual property and investments, from the risks of a trading company. This can protect these assets from a legal claim against the company or a significant downturn in trade.
Sell the business tax free
A holding company could allow the trading business to be sold tax-free. This works especially well if the shareholders do not need the cash on sale and would like to reinvest the proceeds. This could achieve a tax saving of between 10% – 20%.