Commentary

B9.119 Incorporation—effect of differing reliefs on subsequent third party sale

Business tax
Business tax | Commentary

B9.119 Incorporation—effect of differing reliefs on subsequent third party sale

Business tax | Commentary

B9.119 Incorporation—effect of differing reliefs on subsequent third party sale

The preferred approach to CGT on incorporation should also take account of the prospect of a subsequent third party sale of either the shares or of the business assets, including goodwill, to a third party. The table below contains a useful aide-memoire for identifying the base cost of the shares or assets of the business as regards a sale subsequent to the incorporation.

Sale of SharesSale of Assets
Incorporation reliefOriginal base cost of assets pre-incorporationMarket value of assets on incorporation
Hold-over reliefThe nominal value of

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