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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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.
