Sole Trader to Limited Company

JMS

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

MarieNoelle

At which value does he transfer the assets? Does incorporation relief apply?

JMS

VAN and goodwill

MarieNoelle

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?

JMS

Market value

JMS

And with client we are wondering which relief we can use