Can HMRC be notified of a S.266 CAA 2001 election by typing in Box 103 of SEF 6 (other information) of the sole trader's electronic self assessment tax return?
Wording along the lines of:
We the following parties jointly elect under S266, CAA 2001 for the plant and machinery of XXX (sole trader) to be transferred at Tax Written Down Value to YYY Ltd as at the transfer of business on 5th April 2017.
Signed XXX as sole trader
Signed XXX as director of YYY Ltd.
I am both the sole trader and 100% shareholder of the limited company.
If it has to be in paper format, which HMRC office does it need to be posted to?
As far as I can see the guidance says 'notified' within two years.
Thanks
Replies (7)
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How can one party to an election make an entry on the other's tax return? HMRC might accept it, but I wouldn't chance it. Get the election signed by both parties and send it to the address(es) to which tax returns or other correspondence would be sent.
You need to stop that line of thinking immediately. It is bad enough that clients don't understand that a company is a legal entity separate from its owners and management without advisers making the same mistake.
We've attached a pdf of the signed election to the sole trader's tax return and then again to the company tax return.
From GOV.UK: https://www.gov.uk/guidance/corporation-tax-making-a-claim-or-election
What to include in an election
You must clearly state what your company or organisation is choosing to do, and which accounting periods you’re doing it for.
When to make your claim or election
A claim or election should be made in (or accompany) your Company Tax Return, because the claim or election may affect your Corporation Tax calculations and how much tax you have to pay.