Supporting Resolution’s “Good Divorce” Week

by Admin | Jan 12, 2023 | Family Law

Resolution is a membership organisation for family law professionals committed to working in a constructive way. Our Family Team are accredited members of Resolution and support the values encouraged by Resolution in navigating divorce for client. Choosing a Resolution accredited firm of solicitors means that you will be guided through those first steps of divorce in a manner that will offer support and understanding to your emotional journey and to help manage any conflict in a non-inflammatory and non-confrontational manner.

…support & understanding.

Adopting an aggressive approach to negotiations rarely can impede progress and such an approach does very little to help focus attention on the needs of the parties involved. Issues need to be resolved fairly and reasonably to gain an outcome where both parties can move on independently. Divorce should not be a battlefield but an acceptance that sometimes life doesn’t work out as planned and clients need to be guided on how to separate their life/income/assets.

Where there are children of a marriage which has broken down then good communication with your ex-spouse is desirable. It is hugely beneficial for children to have both parents in their life and a good example should be set to them on how to resolve problems sensibly and fairly.

Telling children about divorce and managing their emotions can be a daunting prospect. Parents may worry that they will see their children less and there will be the worry of what impact a divorce will have on the child’s wellbeing. Correct communication at this first step is key and mediation or counselling is encouraged.

Resolve practitioners aim to reduce and discourage any emotional ‘warfare’ or ‘games’ as these can have a lasting detrimental impact on their children’s view of themselves, their parents and relationships they may form themselves in the future. Parties should be guided on how their decisions may impact children of the marriage, allowing them to continue to grow in a loving and nurturing environment.

Here at Thirsk Winton LLP, we can guide you with taking the first steps towards divorce as painlessly as possible. We handle each case with sensitivity, confidentiality and understanding.

Written by Kerrie Atlee

The tax benefits of ownership of property by onshore or offshore residents through
an overseas company have not only been removed but such companies are now more
heavily taxed.
Overseas companies must also now register at the UK Companies House as an
overseas entity disclosing information on a public register about beneficial owners or
managing officers. These rules also apply where the beneficial owner is a trustee of a
trust.

Now that companies are caught by tax rules relating to ATED (Annual Tax on
Enveloped Dwellings) which affects properties valued at as little as £500,000,
Corporation Tax currently at the rate of 25% and potentially Inheritance Tax, most
owners of offshore companies will wish to transfer their property out of the company
structure, usually into individual names or a trust. This can offer an opportunity for
some inheritance tax planning usually by making a lifetime transfer of the property
to family members.

The good news is that SDLT (stamp duty land tax) will be exempt in most cases
provided that the correct procedures are followed.
It is advisable to take tax advice on the range of potential taxes that can arise from
de-enveloping a property.

3 people from a company planning the sale of their business with a solicitor from thirsk winton

HOW TO DE-ENVELOPE

There are usually two ways of proceeding:

1. Pass a company resolution and transfer the property to the shareholders or their nominees by way of a distribution in specie (in kind). This will be exempt from stamp duty land tax (SDLT) provided that it is a voluntary transfer for no ‘chargeable consideration’.
2. Pass a resolution to put the company into voluntary liquidation and carry out a distribution in specie.
The second way will be the more costly since there will be the costs of the liquidator to take into account.

The articles of association must be checked to ensure that a distribution in specie is permitted. If not, the articles can be amended by passing a special resolution. The resolution must be carefully worded if exemption from SDLT is to be claimed. It should not be worded as a cash value dividend equal to the market value of the property to be settled by a transfer of assets.

In order to avoid having to pay SDLT, there should be no third party debt or mortgages over the property. The directors will need to check that the company has sufficient assets to make the distribution and there are no outstanding creditors other than any debt that may be owed to the shareholders themselves.

For overseas companies, a legal opinion may be required from lawyers practising in the jurisdiction as to the legality of the actions being taken in order to satisfy the requirements of the Land Registry.

Our expert solicitors will be pleased to advise and guide you through your transaction. Please contact Alan Zeffertt if you would like assistance:

E: azeffertt@thirskwinton.co.uk

T: 020 7043 1621

M: 07968 190951

Disclaimer: The information in this article is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. It is provided without any representations or warranties, express or implied.

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Hi, we’re Thirsk Winton LLP and we offer a range of client focused, bespoke legal services to commercial and private clients with a strong focus on niche areas including leasehold enfranchisement, dispute resolution and international notarial services.