Taxed twice? Incorporation
Hi - farming partnership considering incorporating fully or maybe just putting in the plant & machinery to form a company that would do the 'farm work'.
The sale of the plant & machinery would crystallise a gain for CGT albeit at 10% re entrepreneur's relief and as is usually the case the 'purchase' price would become a directors loan in the company.
Am I right in thinking that if any of the directors then dies fairly soon into the formation of the company then IHT becomes due on the 'directors loan'? - Effectively surely the same money being taxed twice?
Suppose you would cover this potential libility off by buying some term / reducing term assurance on each of the director's lives (altho age / health of 1 of the directors could make cost of policy prohibitive.
Also - if the land is held outside the company presume that a formal tenancy req'd to maintain APR relief.
But again looking at IHT if one of the directors were to die within the 7 years that the company should have 'ownership' of the land & or the 2 years 'occupation' of the land then would there be implications for APR - suppose I am asking here the wisdom in doing anything which may involve IHT ivo the health of 1 of 'them' not being particularly robust.
Many thanks in advance for comments!
- How to account fot Cross-border vat. 75 1
- Paint Manufacturer Flat Rate Scheme 270 12
- Limited Company - Personal Bank Account 2,274 40
- Entrepreneurs' relief for trustees - receipt of rent 128 3
- VAT on motor expenses 874 31
- Associated companies - CT small profits relief 147 7
- Introduction of Goodwill 174 5
- PayPal Transaction Analysis 149 4
- Incorporation - any tax advantage? 730 19
- Company overdue but wants to be struck off 379 12
- Money transfers between companies owned by one person 193 9
- A change from the old Q v NQ debate 318 11
- Sage 50 (2010) 97 2
- ideas for a bonus scheme for accountants 384 3
- Recommendation of US tax adviser? 87 1
- Notes to statutory accounts 318 15
- Two clients (married to each other) disappeared from client list 392 9
- VAT code for invoice from not VAT registered company 129 2
- HMRC VAT misstatement disclosure 93 1
- VAT Registration 454 19
- Skandia using wrong address 1,538
- Nil Rate Band Trust - index linked debt by way of charge over property 845
- International interest certificate 464
- NOVA 323
- Subby expenses subject to tax & NI? 222
- Can Limited Company Buy Share of Rental Property? 214
- Bonus Bonds 203
- Management expenses for investment company 200
- DOUBLE TAXATION RELIEF BETWEEN A PRIVATE LTD COMPANY AND GREECE (the private Ltd has no employees and its main activity is 191
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 178