Incorporation: Tax implications
For many sole-trader businesses, there comes a point when it is necessary to transfer the trade and assets from the individual to a company owned by the individual. This process is referred to as ‘incorporation’. Incorporation can mean having to consider a number of taxes, including income tax, CGT and corporation tax, and it can be easy to crystallise an unexpected tax charge. However, much depends on how the incorporation is structured as tax reliefs are available. In this webinar, we’ll look at the main income tax and CGT implications for the individual, and show you how you can utilise the reliefs available to avoid any negative tax-related surprises.
What will I learn?
From this webinar you will gain a better understanding of:
-
Income tax implications of the transfer, including the cessation of trade and transfer of stock and plant and machinery
-
The three methods of incorporation and the CGT pros and cons of each
-
The relevant CGT deferral reliefs: Incorporation Relief and Gift Relief
-
Other taxes that may be relevant, including VAT and corporation tax.
Speaker
Stephen Relf - Content and Innovation Manager for Tax
Stephen helps lead the team of in-house tax writers at Croner-i and is responsible for updating the commentary and tools on capital allowances. Stephen has worked in tax for over 20 years and at Croner-i for 6 years.
Prior to joining Croner-i, Stephen was Head of the Tax Technical Team at the Chartered Institute of Taxation and before that he worked in practice (for PwC) and in industry.