A spin-off house in which assets are purchased by a parent company so that the subsidiary can be sold or liquidated separately. As a general rule, we recommend that you obtain an independent valuer before making a decision on hive up, Hive out or Hive down in order to provide an assessment of the company facilities. An “hive-up” is an intragroup transfer of a company from a subsidiary to the parent company. This is the transfer of assets and the resumption of liabilities that constitute the divested transaction, not the transfer of the shares of the company. This content is not available for free. To access Accounting for a hive up under FRS 102, you must be one of the written decisions of the members and the board of directors, as required, to approve the hive. A hive in which assets are transferred to a company, possibly a shell, so that the shares of that company can then be sold. It may be more tax efficient for the end buyer to acquire the assets within a business structure rather than as a self-employed, but he or she does not want the bonds or the history of the original business. Hive essentially means “moving.” An asset, or all activity can be “stung” to a currently existing or newly created group company, we call it “groupco.” The term “hive up” is often used to describe a kind of restructuring within a group of companies when net assets and activity carried out by a subsidiary are transferred to the parent company. . The counterparty – the purchaser – can be any person, any company or any other organization. Depending on the nature of the assets transferred, certain taxes may be generated during the transfer.

However, there are various facilities that may be available and we are happy to work with your tax advisors so that you can get such tax breaks. As always, this is just a general guide, we can`t cover all the scenarios, so if you have a question or a problem, talk to us soon. This agreement is written in plain English and is used for maximum flexibility and ease of use. The owner of the salvaged or refractory merchandise wants to sell it as we have seen. A divestment structure – the allocation of good-corporatism and other assets that cannot go through delivery. Communications to employees and suppliers – to inform them of the company`s transmission.