Produced by Tolley in association with Anne Fairpo
  • 23 Mar 2022 10:43

The following Corporation Tax guidance note Produced by Tolley in association with Anne Fairpo provides comprehensive and up to date tax information covering:

  • Company tax planning
  • Transfer of assets to the company by shareholders
  • Rollover relief
  • Grouping trades
  • Transfer out of assets or trades from the company
  • Demergers
  • Incorporation, or transfer of a business to a company by a partnership
  • Incorporation relief (roll-over relief on the transfer of a business to a company)
  • Stamp duty land tax

Company tax planning

In addition to considering the tax issues for shareholder, it may be necessary to do some planning for the business to be floated, including:

  1. ensuring that all assets necessary to the running of the business are owed by the company, including intellectual property assets (it is not always clear who actually owns these, particularly where the company has grown over a long time) and real estate

  2. separating out assets or trade which are not necessary for the business that is to be floated

  3. incorporation of the business, where it is not already in a company

This planning should be done as early as possible, to minimise any associated tax costs.

Transfer of assets to the company by shareholders

Where assets used by the company are owned by shareholders, either as a deliberate policy where the premises are owned by a shareholder as part of tax planning, or accidentally such as where intellectual property developed by a shareholder is used by the company without formal licence or payment of royalties, it will usually be necessary to transfer the assets to the company as the company will usually need to be floated owning all the assets necessary to the business for a flotation to be successful. Investors are rarely keen to

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