Unincorporating a business
Looking for a bit of help. I've dealt with plenty of incorporations but never an unincorporation.
Am I right in thinking that the rules regarding the transfer of stock and assets are pretty much the same for an unincorporation as they are for an incorporation?
i.e. Plant & Machinery at lower of actual consideration and original cost or joint election to transfer at TWDV.
Stock at market value or election for higher of acquisition cost or amount actually sold for.
The sole director/shareholder is owed quite a bit more than there is in the bank, so presumably some of his loan can be satisfied by transferring assets and stock to him? This still won't cover the additional amount owing (I assume he can't "pay" more than the market value for either assets or stock") so could he be deemed to have paid for goodwill also (so he can then write it off in his sole trader accounts to reduce tax liability) or is that not allowed as they are connected? Whether the goodwill actually has any value would be highly debatable as although the business is trading it doesn't actually make enough to even cover very basic expenses.
Would be grateful for any advice on this.
- Accounts submitted to a the charities comission 141 3
- FILING COMPANY ACCOUNTS 1,068 32
- French Excise Duty - Help Please! 148 2
- What would you do in this situation? 658 14
- Dress code 475 13
- What quality paper do you use for correspondence? 507 16
- Project being run jointly 204 3
- Buying Microsoft's Surface Pro 3 312 4
- Companies House 609 9
- not self employed since March 2011 now received a penalty for late tax return for year 2012-13 365 11
- Where to start to get any of jobs in Finance and Accounting Industry 733 9
- How much did you pay for your website 1,446 25
- Help Required 423 10
- directors control and tax problems 302 5
- Fastest Software 806 13
- What's in a name ? 400 5
- Straightforward email correspondence or PDF letter attached to blank email? 312 4
- Bulk Invoicing 192 6
- Travel and Substinance expenses while abroad 185 3
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 265 2
- CTA study material 714
- Anyone have clients that use Pay4Later to offer customers credit? 437
- Employment related securities question 274
- AIM Stocks and IHT 252
- Recommendations for Ross Martin Tax consultancy 2014 249
- Raiders of the Lost Tax File 225
- Tax Relief for overseas employees 213
- Expat pension contributions? 200
- Trust for Employee 197
- Quickbooks losing VAT return data 176