Incorporating a business
by Stephen Relf
1. Methods
1.1. Exchange for shares
1.1.1. Incorporation relief
1.2. Gift
1.2.1. Gift relief
1.3. Sale at market value (MV)
2. Other taxes
2.1. VAT
2.1.1. Transfer of a going concern
2.2. SDLT (and similar)
2.3. PAYE
2.3.1. Succession
3. Non-tax issues
3.1. Incorporation Agreement
3.2. Bank account for company
3.3. Assign contracts
3.4. Transfer employees
3.5. Notify all interested parties
4. Income tax
4.1. End of period
4.2. Stock and WIP transfer at MV
4.2.1. Elect for cost/proceeds
4.3. Capital allowances
4.3.1. No AIA/FYA
4.3.2. Disposal value
4.3.2.1. Sale
4.3.2.1.1. Proceeds
4.3.2.2. Gift
4.3.2.2.1. MV
4.4. Losses
4.4.1. Relief against income from company
5. CGT
5.1. Gain at MV
5.1.1. Incorporation relief
5.1.1.1. All assets
5.1.2. Gift relief
5.1.2.1. Choice of assets
5.1.3. Business asset disposal relief
5.1.3.1. (formerly Entrepreneurs' Relief)
5.1.3.2. Not goodwill