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.
- IR35 deemed payment and dividends - practical considerations 200 4
- IR35 Low, medium or high risk 87 1
- "Audit Report" 142 2
- 100% Annual investment allowance on luxury cars 756 19
- When are ltd companies "associated" for Vat and tax purposes? 98 1
- Terminal Losses - Online filing 205 4
- SA online - 4 hour limit 1,334 14
- VAT on Hire Purchase 221 2
- Annual tax investigation cover fee? 507 13
- Coding Notice 248 6
- UK company paying dividend to foreign shareholder 266 6
- New business - journal entries 427 22
- Is CGT roll over relief available for let property 236 3
- Payroll software 665 16
- Statutory accounts, current company address, or one that was correct at EOY? 294 5
- Are there Special Rules for Agencies? 413 10
- B2B vat in the EU 203 4
- Samadian effect on self employed student support workers 217 4
- Changes to class 2 NIC's 248 3
- Client RTI Shows payments not his 216 4
- Auto enrolment excuses 900
- Feedback on accounts production software for IFRS 726
- Add T&Cs to Sales Order in Sage 418
- Social investment tax relief 225
- Digita Hosted Software 221
- accounting for this transaction 208
- Call Centre Data Costs 206
- Problems with Sage 50 Payroll v21(2015) 187
- Travel costs and contractors 179
- Incorporating Sole Trade and bringing in spouse 179