| Commentary

242 Method of transfer

| Commentary

B: SALE TO A CONNECTED PERSON

1: INTRODUCTION

242 Method of transfer

Where a proprietor is, or proprietors are, running a business through an unincorporated trade, that is, a sole trade or a general partnership, there may come a time when they decide it would be advantageous to incorporate the business. It may be that the business is rapidly expanding and moving into a more risky area and the proprietors wish to take advantage of limited liability, or the profits may have risen to the level where corporate status would bring substantial tax benefits.

In either case, the usual method

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