Selling Ltd Co with debt

[Lance]

TANSTAAFL

Anyone willing to buy it is gonna own your arse!!!

[Tiptopp]

Thanks to everyone who responded so quickly and honestly. It’s what I expected and deserved.

I’ll investigate all possibilities with everything you’ve said in mind.

[BlasterBates]

It looks to me like the deal is they buy your company, bail you out and earn future profits. This will work if you own a restaurant but not as a PSC.

[GregRickshaw]

This can only be a wind up (pardon the pun)...

[cojak]

Anyone willing to buy it is gonna own your arse!!!

Absolutely this.

Take a lot of care that you don’t jump into hotter and deeper water than you’re in right now.

[Paralytic]

I believe there is a small market for companies in debt being bought out, and the purchaser can settle things and uses the losses to offset the profits of other companies owned by a same parent company. For tax reasons, as always.

But, I very much doubt they'll take on a company with a debt to HMRC, particularly if it is due to the director (ab)using funds that should have gone to the taxman.

[Lance]

I believe there is a small market for companies in debt being bought out, and the purchaser can settle things and uses the losses to offset the profits of other companies owned by a same parent company. For tax reasons, as always.

But, I very much doubt they'll take on a company with a debt to HMRC, particularly if it is due to the director (ab)using funds that should have gone to the taxman.

there is a market, but it's way more complex.

If the company has just debt of say £100k, then they can pay off the £100k debt and save £20k CT.
Total cost of that is £80k.... and they still have to wind up a company.
So it's still not worthwhile buying unless there are some other assets (buildings, debtors, goodwill etc.)

Buying a technically insolvent company may work out, but not a PSC with a chunk of debt to anyone (HMRC or other). There has to be something of value in the company.

[Crossroads]

Debt firm buys TipTopps Ltd.

Ltd is owed £thousands in Directors Loans to TipTopp. Do these loans exceed the HMRC liabilities? Does TipTopp have assets to this value?

TipTopp is bankrupted by the new owners, they settle HMRC liabilities and keep the rest.

[cojak]

crossroads has succinctly defined that hotter and deeper water…

Debt firm buys TipTopps Ltd.

Ltd is owed £thousands in Directors Loans to TipTopp. Do these loans exceed the HMRC liabilities? Does TipTopp have assets to this value?

TipTopp is bankrupted by the new owners, they settle HMRC liabilities and keep the rest.

[BlueSharp]

The other aspect here is money laundering and fraud, who exactly wants to buy the company, will they push dirty money through the company to clean it?