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

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more

Married couple’s allowance

Married couple’s allowanceThe married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 89 years old on 5 April 2024 to qualify for an allowance in the 2023/24 tax year.There

14 Jul 2020 12:13 | Produced by Tolley Read more Read more

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Steve Collings Read more Read more