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.
- Enquiry into tax return - how co-operative would you be? 338 8
- Halloween - do you celebrate it? 1,402 47
- Interest on HMRC contract settlement 160 3
- Goodwill gesture for providing work 431 12
- Share premium or Directors Loan 732 30
- VAT reconciliation and VAT return on Sage 107 3
- What would you do in this situation? 140 5
- Filing a P87 (professional fees) before year end. 133 2
- Recommendations for payroll/AE software? 603 13
- More HMRC on gov.uk 636 11
- Rollover relief - when does gain crystallise in this situation? 87 1
- Offshore company transferring assets to a UK individual. 341 14
- Interest Free Loan - Salay Sacrifice? 244 4
- Research and development - repayment timescale 220 5
- Sole trader hid directorships. 391 6
- NOVA 555 1
- Clearing payments on account/ Sage 50 275 10
- Regional Development Grant 124 4
- Problem ex client...again.. 2,414 21
- Company car without a salary 233 2
- Bonus Bonds 391
- Insolvency and whistle blowing 378
- Transfer of funds into recently set up company 289
- TPR imposes first penalty notice fines 258
- Box 8 VAT Return - deposit payment 187
- Husband proposes to buy the car as Director unable to acess finance 179
- Finance Lease 157
- Company Car Lease 154
- Form 42 149
- Demerger Reserve 132