Commentary

B9.125 Incorporation—inheritance tax aspects

Business tax
Business tax | Commentary

B9.125 Incorporation—inheritance tax aspects

Business tax | Commentary

Incorporation—other tax considerations

B9.125 Incorporation—inheritance tax aspects

Where a sole trader incorporates his business, this does not, in itself, result in any diminution in the value of his estate. Accordingly, there will be no transfer of value for IHT purposes.

However, where a partnership is incorporated, some partners may suffer a diminution in the value of their estates. This is because a minority share in the newly-incorporated company will often be worth less than the previous share in the partnership. Nevertheless, there will still be no transfer of value for IHT purposes where the incorporation is a commercial transaction and

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