Commentary

B9.110 Capital gains tax aspects of incorporation—overview

Business tax
Business tax | Commentary

B9.110 Capital gains tax aspects of incorporation—overview

Business tax | Commentary

Incorporation—capital gains tax aspects

B9.110 Capital gains tax aspects of incorporation—overview

The transfer of business assets by an individual to a company on incorporation is a disposal for capital gains tax purposes deemed to take place at market value because the sole trader and the company are connected persons. The chargeable assets will usually be land and buildings and possibly goodwill. Current assets such as stock and debtors are not chargeable assets.

Plant and machinery assets on which capital allowances have been claimed may also be chargeable assets for capital gains tax purposes but see B9.105 for a discussion

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial