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.
- Overpaid In Employers NI - RTI EYU for hundreds of employees 279 3
- Private doctors - Ltd company vs partnership 1,224 14
- VAT disaggregation 276 4
- Giving shares away 431 8
- Non-IR35 contractors and travel, since Autumn Statement 218 2
- Buy Samsung Galaxy Note 5 561 11
- New LLP, basis of assessment and which boxes to complete? 51 1
- property capital gains 246 2
- Transferring DLA between Directors 234 1
- Tips on meals 262 2
- Rental losses on jointly owned property 221 3
- Personal Tax 780 13
- Stumped - IHT 237 2
- Leaving the VAT FRS Scheme or trying to stay as long as possible? 432 6
- No PAYE Registration but need auto enrolment 499 11
- HMRC now overriding SA bank repayment details on tax returns 1,309 33
- Credit management tools 176 1
- Write an article on latest tax changes for landlords. 803 20
- Incorporate to utilise dividend allowance next year? 447 7
- CGT and primary residence 210 1