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.
- Property Purchase in Daughters Name 281 9
- Merging my businesses 62 2
- Best Tax / Accounts Production software 303 7
- Where has Portia gone? 1,461 61
- Can i reclaim tax if my fuel cost more than the AFR in a company car 72 1
- Getting fees, getting harder? 3,662 73
- Spousal transfer and PPR 509 16
- Is my client risking reputational damage? 103 4
- VAT on commercial property 105 3
- Rogue Accountant 2,994 49
- Performance measurement within accounting practice 226 4
- deceased creditor 162 5
- Corporate member of LLP 269 1
- Investment company 264 6
- Error or mistake in CT return 329 1
- Penalty on dormant CT600 prior to trading 209 1
- HMRC computer behind the times 364 3
- Sage & IRIS Payroll Employee ID. Problem Using Old Ee ID's? 96 1
- Transfer of stock 361 12
- Holiday entitlement 546 10
- Services via intermediaries and new HMRC reporting requirements 779
- RTI - duplicate employee record 528
- Pensions Regulator 443
- How hard is it to reduce a code? 401
- Sage Vat return box 2 305
- Sanzar 301
- Digital marketing focus group 282
- How do you do it 270
- Kashflow balance sheet difference 238
- Report old income 237