CASE STUDY

Property Rental
Matrimonial

Loake & Brigstock – N0089 – 30/11/2012 Instructions received The income on this case related to rentals property/caravans Our instructions received were as follows:- (i) To calculate the current open market value of the parties shareholding in Y Limited and Z Limited and how marketable the companies would be, to include specific reference to any recent sales of comparable companies of which I am aware (ii) To comment on any impediments I foresee in realising the value of the parties shareholding in the companies (iii) To advise on the maximum amount of capital which could be released from the companies in order to fund a lump sum payment from Mr A to Ms B on the alternative assumptions: a) Ms B transfers her shareholding in Z Ltd to Mr A as part of an overall settlement; and b) That Ms B retains her existing shareholding (iv) To advise on the maximum amount Mr X would be likely to be able to borrow by using his shareholdings in the above companies as security on the same assumptions as subparagraph (iii) above. (v) To advise on the tax implications of a sale of one or more of the real property assets of the companies and the distribution of the proceeds of sale to the shareholders on the assumptions as in subparagraph (iii) above. (vi) To advise on the total gross income (whether by way of salary or dividend) which has been received by the parties for the last 3 completed Tax Years. (vii) To advise on the maximum amount of income (Gross and Net of Tax) which the parties or Mr X alone could draw from the Companies for the foreseeable future without jeopardising their continuing operations on the same assumptions as in subparagraph (iii) above and on the assumption that none of the real property assets currently owned by the companies are sold, and that Ms B does not in the future receive a salary from the companies

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