Commentary

B9.126 Incorporation—stamp taxes aspects

Business tax
Business tax | Commentary

B9.126 Incorporation—stamp taxes aspects

Business tax | Commentary

B9.126 Incorporation—stamp taxes aspects

Stamp taxes are outside the scope of this publication but clearly it is necessary to consider them in deciding whether to incorporate, so this article highlights some of the relevant issues.

The transfer of a business to a company in exchange for shares is best evidenced by a written sale agreement between the parties. Such an agreement used to be liable to ad valorem stamp duty but this is no longer the case.

Debtors

When stamp duty was in point, it was common not to transfer any debtors on incorporation. The company was then appointed as agent to

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