Incorporation

Debtors transferred?

transferred at book value, no tax implications

Stock/inventory transferred

Default is to transfer at MV

Election can be made to transfer at higher of cost and actual price

SBA’s

stop when transferred

plant and machienery?

Balancing allowance or balancing charge claims

Company can claim CAs on the same amount - no AIA/FYA

goodwill on transfer?

Gain arises based on proceeds less cost

when is BADR not available on goodwill incorporation?

incorporating into close company

you will own more than 5% of shares

goodwill was generated internally

What reliefs can be claimed when incorporating?

Incorporation relief and gift relief

What can you do if there is a balancing charge on incorporation?

Joint election can be made within 2 years of transfer date for P&M to be transferred at TWDV. This avoids IT charge

What do assets used in sole trader qualify for - IHT?

100% BPR

What IHT relief can you get on assets held personally?

50% BPR