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Sole Trader to Limited Company

Hello all,

I have a client who is incorporating for the first time. He has a fixed asset (Van) and goodwill and wants to transfer it into the company. My understanding for the company side is that it will be:
DR FA (tangible & intangible)
CR DLA

But how does it affect his sole trader self assessment?


Thanks in advance,
Joanna

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    At which value does he transfer the assets? Does incorporation relief apply?
  • JMSJMS Registered Posts: 4
    VAN and goodwill
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    Yes but what was paid from the company to the sole trader for the assets? Market value or other value? Is there an election to transfer assets at TWDV? Did incorporation relief apply?
    burg
  • JMSJMS Registered Posts: 4
    Market value
  • JMSJMS Registered Posts: 4
    And with client we are wondering which relief we can use
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