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Incorporation Relief

What are the double entry requirements

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I have a client who has incoporated his BTL properties.  The purchase price initially was £360,000.  The value at time of incoporation was £610,000.  There are no borrowings on the properties.  How do i record this in the BS.  Is it a case of :

Dr Fixed Assets: £610k

Cr Share capital: £360K

Cr Share Premium: £250K 

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paddle steamer
By DJKL
23rd Mar 2022 16:59

How has he precisely incorporated them, what does the agreement with the company say?

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By jndavs
24th Mar 2022 22:13

You will presumably be issued with shares worth £610K
with a base cost for CGT purposes of £360.
The gain is deferred until the shares are sold
So yes.

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