Previous business

[Saibabashir123]

Hi Marcnath and Zimba

Your help all these days is highly appreciated.
I have one query could you please guide me on this

There is a company named ‘X’ and in 2013 company named ‘Y’ purchased it
And I’m the company director of Y which is incorporated in 2013 and I have transferred 50k from my personal to Y company business account
And when money was transferred to Y company we (another business partner)have paid that money from Y company to company ‘X’

Can I claim this 50k transferred to company Y as investment, as this is the new company and was not purchased from someone?

If I have spent 50k in transferring it to ‘X’ company is this still be counted as investment?
Is it counted as buying the business from previous owner? But the money went was into business account not the personal account
In this case will it be counted as investment

[marcnath]

Hi Marcnath and Zimba

Your help all these days is highly appreciated.
I have one query could you please guide me on this

There is a company named ‘X’ and in 2013 company named ‘Y’ purchased it
And I’m the company director of Y which is incorporated in 2013 and I have transferred 50k from my personal to Y company business account
And when money was transferred to Y company we (another business partner)have paid that money from Y company to company ‘X’

Can I claim this 50k transferred to company Y as investment, as this is the new company and was not purchased from someone?

If I have spent 50k in transferring it to ‘X’ company is this still be counted as investment?
Is it counted as buying the business from previous owner? But the money went was into business account not the personal account
In this case will it be counted as investment

How would HO know that money was transferred from Company Y to Company X ? Are you planning to provide all the bank statements and transaction records of your companies ?

[Saibabashir123]

Yeah because I wanted to prove that I have invested
So if in case I send the bank statement what’s the scenario?
And in case I don’t send the bank statement where I have transferred to previous owner what’s the scenario?
Is this counted as investment or not considered as investment?

[CR001]

So who got the £50k?? Someone else and if yes for what purpose, buying a business??

[Saibabashir123]

Thank you for the reply
So it means we are buying the existing business but not establishing a new business
Am I right?
So I can’t claim the investment on this business?

[Saibabashir123]

Hi Marcnath

Could you please guide on this

[marcnath]

Yeah because I wanted to prove that I have invested
So if in case I send the bank statement what’s the scenario?
And in case I don’t send the bank statement where I have transferred to previous owner what’s the scenario?
Is this counted as investment or not considered as investment?

You have invested 50K into company Y and you have to provide evidence of that.

I am now confused - are you then trying to claim the 50K that Y invested in X as additional investment ? If you are not, why would you have to submit documents of that transaction ?

What business is company Y in ?

This can get complex depending on your business and the company structures.

It would be safer but not absolutely necessary to assume that if 50K went to previous owner of the business, then it is not counted.

[Saibabashir123]

Hi Marcnath

Thank you for your response
Yeah company Y is the food business franchise
And even X was the food business franchise
Once I invested in company Y we got that food franchise from company X
I wanted to show this business now and wanted to show all the employees from Y also
Or else do I need to prove that there is net increase in the employees compared to the company X
Will this becomes previous business or a new business is my question

[Saibabashir123]

Hi Marcnath
Could you please share some light on this
Thanks

[marcnath]

Hi Marcnath

Thank you for your response
Yeah company Y is the food business franchise
And even X was the food business franchise
Once I invested in company Y we got that food franchise from company X
I wanted to show this business now and wanted to show all the employees from Y also
Or else do I need to prove that there is net increase in the employees compared to the company X
Will this becomes previous business or a new business is my question

As per this scenario, I believe you investment will be excluded.
The employees is more of a grey area and you could argue for that to be accepted but HO will most likely look for two additional employees.

[Saibabashir123]

Thank you so much for the response