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Sole trader to limited company

Posted by Anonymous PM | on Sun, 14/03/2010 - 08:42  496  3 comments | report

When a sole trader transfers his business to a limited company in which he is the sole director / shareholder, must the value of his ST capital account be the deemed equity value in the company ?

Is it possible to introduce all or part of the ST capital account as a directors loan account in the new company, if not in full, then up to an amount equivalent to the personal CGT annual exempt amount ?

Any comments appreciated.

Comments
petersaxton's picture

Don't forget goodwill and value the other assets

petersaxton | Sun, 14/03/2010 - 16:19 | Permalink

The value would be the value of assets and liabilities sold to the company including goodwill.

blok's picture

.

blok | Sun, 14/03/2010 - 19:14 | Permalink

I am sorry, I think your question is rather badly worded.

It would help if you were more specific.

Are you fishing for general planning points or is it a specific case you have in mind?

What is transferred by the "ST" is a question of fact!

 

 

pawncob's picture

basic

pawncob | Sun, 14/03/2010 - 21:15 | Permalink

Read this:

http://www.hmrc.gov.uk/cgt/businesses/basics.htm