Insurance and Tax Issues for Asset Transfers

Insurance and Tax Issues for Asset Transfers

If taking a lease find out who will be responsible for arranging insurance, (typically the landlord), and where the organisation stands if the premises are damaged by an uninsured risk; does the tenant have to repair even though it may not be their fault? In asset transfer it is very common for leases to contain a "full" repairing obligation requiring the tenant to put the premises into good and substantial repair, (often at great expense), even if they are in a relatively poor condition at the start of the lease. This is a major risk factor and seeking professional advice in this area is strongly recommended.

The valuation of the freehold / leasehold interest will impact on the tax, (including Stamp Duty Land Tax), payable.

It is not advisable to enter into any substantial contracts for the use of assets without obtaining legal advice on the terms as ultimately this may cost the organisation more money if mistakes are made.

Saving Dorset's Libraries

Posted by Marcus  |  28th Oct 2011
Two stories of efforts to transform and save community libraries in Dorset. Thanks to our contributors from Lyme Regis Development Trust and Friends of Charnmouth Library.