Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Will storage unit rental trigger ITTOIA 2005, s 396B?

22 January 2024
Issue: 4921 / Categories: Forum & Feedback , Business
Trading subsidiaries

A client owns all the shares in a holding company which itself owns all the shares in two trading subsidiaries. Our client the shareholder of the holding company is in his late 60s so he wants to retire and arrange the sale of the two trading subsidiaries (TS). The two TS have different trades so there will be two different buyers.

Once each has been sold with substantial shareholdings exemption (SSE) being claimed on the resulting capital gains the holding company will be placed into members’ voluntary liquidation (MVL) so the proceeds can be paid to our client in capital format.

There is a slight wrinkle: the holding company also owns two storage units that it rents out. Their value is very modest: about £250 000 (by comparison each TS is worth about £3m). The plan had been that the liquidator would...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon