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.
- Grammar, spelling and silly questions 936 40
- Investment from Friend 189 10
- Receipt bank 351 8
- Pounds Shillings and Pence 638 24
- Trading lossess & non trading co & investment income 47 1
- Do we have to register for VAT? 488 10
- Self Assessment and P11D 157 4
- Director remuneration £1000 only in year. paye registration required? 343 4
- Company dividends 550 15
- Money laundering and can accountants be sued by clients if they make a report 192 5
- Directors Salary and Self Assessment (PAYE) 90 1
- Tax Penalty overreaction 2,182 15
- Two weeks grace on self assessment where repayment is due? 171 2
- TRONC scheme 106 1
- Advice on letting a client go ? 715 13
- Capital Gains Relief 167 5
- client can't/won't pay 1,615 29
- Identity check problem 1,273 13
- A Director of a Ltd Company let a general Manager run the company, and if anything goes wrong the general manager is responsible? 218 3
- Business Set up cost 116 1
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 881
- Underpaid VAT assessment and relation to SATR 582
- Did you realise Google will not patch android exploit ... 545
- Latest phishing scam 479
- Entrepreneurs' relief 427
- Cashback for opening business bank acct = trading income? 351
- Corporate LLP with 30 June Year end - How to record on SA800? 326
- Auto Enrolment Questions Answered 250
- Penalties- On Tax Returns (New Regime) 247
- Loan benefit after person ceases as director/employee 171