Disincorporation

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Disincorporation

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

Tax consequences of disincorporation

There are potentially some unfortunate tax consequences of disincorporation depending on the assets held by the company and the proprietor’s own position. It is important that tax advice should be sought in advance.

Disincorporation of a company and transferring the trade to the proprietor’s sole trade has the following tax effects:

  1. chargeable assets (which usually includes goodwill at market value) which are transferred will be deemed to be transferred at market value as the trader is connected with the company, see the Connected party disposals guidance note. It may be necessary

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more Read more

Allowable deductions for employee-related expenses

Allowable deductions for employee-related expensesThis guidance note covers the tax treatment of some common types of trading expenditure relating to employees. Some of these are disallowable under general principles, for example the wholly and exclusively test or capital versus revenue expenditure.

14 Sep 2022 09:49 | Produced by Tolley Read more Read more

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more Read more