The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
In this guidance note, references to ITTOIA 2005 relate to the rules applicable to individuals and references to CTA 2009 relate to the rules applicable to companies.
How stock should be valued on a cessation or transfer of trade is dictated by ITTOIA 2005, s 173 for income tax and CTA 2009, s 162 for corporation tax purposes. If the accounts valuation is different from the statutory valuation, a tax adjustment must be made.
The valuation of stock depends on the identity of the buyer. The buyer could be:
a non-trader or a non-UK trader
a UK trader who is not ‘connected’ with the vendor, or
a UK trader who is ‘connected’ with the vendor
CTA 2009, ss 164–167; ITTOIA 2005, ss 175–178
If stock on cessation or transfer of trade is being sold to somebody who is not a trader or who is not a UK trader, the stock must be valued for tax purposes at its market value.
HMRC sees this as the last opportunity to tax the stock because once it has left the UK tax net, HMRC is unlikely to get the opportunity to tax the stock again. The stock could be going to a foreign party or it could be going to a UK i
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
What is an Age 18–25 trust?The special category of Age 18–25 trusts was introduced by FA 2006 to offer some compensation for the loss of old style accumulation and maintenance (A&M) trusts. The A&M regime offered exemption from IHT charges on trusts in favour of children and young adults up to the
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may
This guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax liability falls on the trustees