Here's the background:
Over the last 1.5 years, myself and my brother have been developing some software. We have now incorporated and are starting to consider how we will transfer the IP into the business, but there are quite a few considerations. I would appreciate everyones thoughts.
- Maximise balance sheet
- Maximise R&D claim (if possible)
- Minimise any cash payment from the business to us
- Minimise personal income tax capital gains
- Timing. When do we do it?
- Valuing. How do we do this?
- Accounting. What's the best way to do this?
My current thought is as follows.
Do it sooner rather than later such that the value doesn't increase too much (risk is if the business goes under)
Value, not expecting massive revenues in the first year (maybe 20k or so), so value it at this. This then also minimises capital gains.
Dr Asset 20k
Cr Equity - Capital Introduced 20k
Not sure how this works for R&D claim, can you claim R&D if you haven't spent any cash?
Potentially could sell into the business (valuing it higher) and then writing off and not pay us back. This wouldn't make sense as would need to pay CGT, but if we could get R&D credit, it would, right?
All thoughts appreciated.