This is a practical and detailed guide on tax issues, planning points and pitfalls which may be encountered when incorporating a sole trade or partnership business, or when transferring a company's business to a sole trade or partnership.
It guides tax practitioners and accountants who need to advise their clients on whether or not to incorporate their business and if they are going to incorporate, what obligations they have.
There is detailed coverage on all tax issues that might apply to small businesses (including NIC, CGT, IHT, VAT and capital allowances) but also in-depth content on how to deal with legal and accounting compliance issues. Tax advisers and accountants need to be able to advise their clients not only of the relative tax implications of incorporation but also what legal and accounting obligations they will have as the level of compliance necessary to become a company may sway business owners' ultimate decision.
Since the last edition was published in early 2016, there has been significant legislative change reflected in three Finance Acts, in particular:
- Entrepreneurs' relief: the relief restriction on the acquisition of goodwill from related parties (FA 2016)
- Dividend tax reforms (FA 2016)
- The 'anti-phoenixism' targeted anti-abuse rule (FA 2016)
- Intangible fixed assets and the restriction of deductions in respect of goodwill (F (No 2) A 2017)
- Change in tax rate for loans to participators (FA 2016)
- The new Investors' relief (FA 2016)
- The changes to IR35 rules for public bodies (FA 2017)
- The abolition of reliefs for employee shareholder shares (FA 2017)
- Corporation tax carried forward losses (F (No 2) A 2017)
- Increased flexibility for the substantial shareholdings exemption (F (No 2) A 2017).
