Kevin Read discusses some key issues to address when considering the disincorporation of a business.
In my article in last month’s Tax Insider, I explained why it may now be fiscally attractive for some owner-managed businesses to disincorporate. Here are some further considerations.
No ‘disincorporation relief’
Unlike with an incorporation (where, for example, TCGA 1992, s 162 allows gains on qualifying business assets to be rolled over into the cost of the shares being issued), there are no special tax reliefs available on a disincorporation.
George Osborne did introduce such a relief in April 2013, which allowed land and buildings and goodwill to be transferred to the shareholders at the company’s capital gains base cost, thus avoiding a corporation tax charge on any gain made by the company. However, the relief was limited in
