We have a Client who has a Partnership with 2 partners. The partners are also the directors and shareholders of a Ltd Co. Incorporation relief is not appropraite as not all assets are being transferred from the Partnership. They wish to transfer the Plant & Machinery into the Ltd Co in return for cash/loan. The TWDV of assets is £900,000, the Book Value is £1,300,000 and the likely market value is £2,000,000.
We believe that for tax purposes this will be transferred at TWDV but what value should we use for accounting purposes?
Any assistance would be greatly appreciated.