Apologies for reposting a question from yesterday but the original question had the wrong title and got caught up in an AW glitch before I could check and correct things.
I haven been asked to help incorporate a going concern business. I haven't done this before (but you have to start sometime!) so I wanted to check a few things before deciding whether the work might be too complicated for me.
Potential new client has run a successful BnB business for several years with a turnover approaching 250,000 and profits of apprx 80,000 after deducting loan interest of 30,000. He owns the building that the business is run from.
It is not his PPR (he lives in the next village).
He has asked whether he might be better putting the business into a limited company?
Just trying to get my head round the various issues that need to be considered. I have tried to research the best approach but the answers seem fragmented. I can't find a book or publication that covers all the issues in enough detail.
Would it generally be a good idea for the company to buy all the assests of the business including the property or are there possibly reasons to leave the property out of the business?
If the property is included in the incorporation will there be stamp duty and CGT to pay?
Is VAT payable on the sale of the business or would the new business just take on the VAT registration of the old business?
What is the possible interraction of entrepreneurs relief and incorporation relief in this situation?
I presume a value for goodwill will need to be attributed to the business; is a professional valuation required for this and does a valuation have to be approved by HMRC before going ahead?
The more I think about it the more complex it seems.