Employer Allowance & Transfer of Business

Employer Allowance & Transfer of Business

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Client is transferring business from a partnership to a limited company.

The Employer Allowance will not have been fully utilised in the partnership at the time of the transfer (c£1800 of £2000).  HMRC say can only have one allowance but weren't clear whether could claim on the partnership and get the balance on the limited company or had to just claim in the limited company to get the whole £2000.

I asked for a reference to the guidance but he said it wasn't in there but we could write for a ruling.  Whilst I think it unlikely that would get the allowance twice, I would rather see it in black and white.

Is anyone able to point me in the right direction please?  Will probably get a ruling anyway.

Thanks

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By User deleted
28th Apr 2015 21:04

The answer is No. Have a read of s.2(5) and (6) here.

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