Holding Company Tax Advice

Stovin

I currently have 3 very small companies, each one I own different equity shares in. I wondered if it is possible for any profits I recieve to go into a holding company. Then transfer my mortages into the holding company. My goal is to try and live from a holding company to protect myself from ever going bankrupt. My own money I know is just for my basic needs, food, tv, going out. And not have the stress of my 2 properties i have mortages on in the future.

Any advice welcomed.

Regshoe

The short answer is no this won't work.

You can transfer your companies under a single holding company, I'm not sure what you would acheive though if you already fully own the three small companies.

I assume your mortgages are for your house(s) rather than any business commercial property? As you point out the Ltd company wrapper protects you (with certain exceptions) to bankruptcy, so your lenders are hardly going to agree to let you do this!

Stovin

Regshoe wrote: »

The short answer is no this won't work.

You can transfer your companies under a single holding company, I'm not sure what you would acheive though if you already fully own the three small companies.

I assume your mortgages are for your house(s) rather than any business commercial property? As you point out the Ltd company wrapper protects you (with certain exceptions) to bankruptcy, so your lenders are hardly going to agree to let you do this!

I am not 100% owner in the 3 companies.

I am 50% in 1 , 80% in another, and plan on launching 2 more with varying equity splits

p00hsticks

Stovin wrote: »

I am not 100% owner in the 3 companies.

I am 50% in 1 , 80% in another, and plan on launching 2 more with varying equity splits

So what do the other shareholders think of this scheme of yours ?

I don't know much about this sort of thing but surely if you transfer assets into a company in which you own shares, then the value of the company (and therefore the shares you own) increases ? Any creditors of yours would just go after your shareholding in the company rather that the original asset ? So it may stop you from going bankrupt, but wouldn't really protect your assets....