Readers’ forum: Onshoring property company

A UK resident client owns a company resident in the Channel Islands. The company owns rental properties in the UK which are outside ATED. The client would like to simplify the structure by bringing it onshore. The properties are mortgaged and owned since pre-2015. It seems that the simplest way to achieve the desired objective is to put a UK holding company in place following a share for share exchange and for the offshore companies then to distribute the properties as dividends in specie.

I have a number of concerns. Will TCGA 1992 s 171(1A) preclude relief on the transfer? If there is a liability would the appointment of UK resident directors prior to the transfer remove the s 171(1A) risk? The offshore companies are in the charge to tax as a result of holding UK land. Is this sufficient to qualify for relief under s 171? Does the...