Date of business transfer to limited company - part disposal?? HELP please!
Sole trader client with two main customers, transferred business to a limited company in spring 2012.
Now trying to complete the valuation and get CG34 valuation clearance but am struggling to know how to proceed.
Customer A contract novated on 31 May with all income after that date going through the limited company. Customer B took longer to process the paperwork and only novated the contract on 31 July. This was purely due to administrative problems.
So sole trader has trade in April and May with both customers, then June and July with customer B only. Limited company has income from customer A in June and July, then both customers A and B from August onwards.
The initial plan had been to transfer the entire business to the limited company on 31 July, when all had been finalised but in reality I suspect we seem to have a part disposal at 31 May and the final disposal at 31 July. Is there any way to avoid this? Do I really have to split the business and do two valuations, one at each date, two CG34s etc or am I missing some way round this?
I have prepared an initial valuation report as at 31 July, and have increased the 4 month period to July 12's profit to take into account both contracts for 12 months to get to an annual amount. But I worry now as the method of doing this shows that one customer novated on 31 May, and is this going to be queried as a part disposal?
Sole trader accounts have been completed to 31 July as that is when the sole trade stops altogether. If there was a part disposal at 31 May I would presumably have to create another set of accounts to send off with that valuation??
This is my first valuation report and I had the figures reviewed by someone more experienced, who agrees they are reasonable but said the way I have calculated the uplift to a full year looked odd. (I calculated by saying the four months to 31 July included 6 'customer months' (i.e. 2 each in April and May, 1 in June and July) and that the full year would include 24 'customer months' so the uplift should be 3x the original.
PS Yes murphy1 I also have times when I feel like giving it all up!!
- Aged Debtor 37 1
- Taxcalc , the hub of the problem 939 34
- Loss carry back in Taxfiler 60 3
- Grammar, spelling and silly questions 748 28
- A Director of a Ltd Company let a general Manager run the company, and if anything goes wrong the general manager is responsible? 124 2
- Identity check problem 1,208 12
- blank - ignore 480 8
- Part disposal of shareholding with CGT loss attached 79 2
- calculate mortgage interest 344 5
- Do we have to register for VAT? 435 9
- Capital Gains Relief 85 3
- Companies House praise 216 1
- Tax Penalty overreaction 2,042 14
- Advice on letting a client go ? 619 11
- client can't/won't pay 1,550 27
- Most cr*p bank account ever? 145 1
- Directors NIC's 172 5
- VAT field when booking bills for organisations on VAT FRS 72 1
- Entrepreneurs relief 154 2
- Declaration of interest 191 7
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 875
- Underpaid VAT assessment and relation to SATR 569
- Did you realise Google will not patch android exploit ... 533
- Latest phishing scam 469
- Entrepreneurs' relief 412
- Cashback for opening business bank acct = trading income? 338
- Corporate LLP with 30 June Year end - How to record on SA800? 317
- Auto Enrolment Questions Answered 239
- Penalties- On Tax Returns (New Regime) 227
- Loan benefit after person ceases as director/employee 163