A client of mine is a small sheep farmer and a sole trader. She also has a 25% share in a large farm, which operates as a partnership, with her colleague (boyfriend)owning the remaining75% share in the farm. The plan is to transfer/merge the sheep business into the farm. The sheep business has stock of sheep plus some farming equipment. Full capital allowances have been claimed on the equipment so a nil tax written down value. To avoid a balancing charge we could transfer the assets for £1 consideration. But does this mean that for accounts purposes the assets appear in the balance sheet of the partnership for £1 and £1 entry on her capital account? Or can we have a different value for accounts purposes? The tractor itself is worth around £4,500. Final question, do we have to use market value for the sheep stock or can we put a different value on there?
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You can't have your cake and eat it.
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim33485
What's the point of having cake if you can't eat it?
Did you consider the rules for connected persons?