Transfer of assets from Partnership to Ltd Co

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. 

There is 1 comment. Login or register to view it.

I'd use market value

BKD's picture