Buying the assets of a business

[essayer]

I (a ltd co) have the opportunity to purchase some contracts of ongoing business from another ltd co.

The Ltd Co's director has just revealed that he would like the purchase price paid to him directly. The sum is approx £15k. There would also be a small purchase fee paid between the companies.

I can't really see how that's going to work. I wonder if he thinks I will personally send him the money so he will not have to pay the tax (alarm bells ringing!). If my Ltd Co just pays him the money personally (he invoices us?) then surely HMCE will see this as transferring the assets undervalue.

I assume he wants to avoid the dividend+corp tax.. my first thought is that I should run a mile. It's business that I want, but not at the risk of tax evasion! Any opinions?

[essayer]

If he buys the assets from the company for say £1, then sells it to my ltd co for £15k, and documents everything, I assume there is no risk to my company..

However, he'd have to pay CGT and I assume the fact they were bought for £1 and sold for more than that would imply they were transferred undervalue..

I'm not interested in a route where I give him cash personally, that's for sure. If nothing else, I end up paying ~40% more to extract the money from my own business!

Looks like ltd co to ltd co is the only option..