Chris Holmes and Ben Handley (BDO) provide a practical guide to one of the oldest statutory CGT reliefs that is subject to some strict conditions and restrictions.
The purpose of incorporation relief
The then government’s original announcements of its reasons for first introducing incorporation relief (‘IR’) are lost in the annals but the purpose of IR is clear from its effect: it allows in certain acceptable circumstances business owners the flexibility to transfer their trade to a company without crystallising a dry tax charge.
Throughout the tax legislation there are similar examples where governments wish to support business by removing tax as a barrier in their commercial development. In most such cases legislation has been drafted with a requirement for there to be a trade with conditions to deny or limit the relief for non-trading activities. In contrast IR applies to ‘businesses’ ...
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Chris Holmes and Ben Handley (BDO) provide a practical guide to one of the oldest statutory CGT reliefs that is subject to some strict conditions and restrictions.
The purpose of incorporation relief
The then government’s original announcements of its reasons for first introducing incorporation relief (‘IR’) are lost in the annals but the purpose of IR is clear from its effect: it allows in certain acceptable circumstances business owners the flexibility to transfer their trade to a company without crystallising a dry tax charge.
Throughout the tax legislation there are similar examples where governments wish to support business by removing tax as a barrier in their commercial development. In most such cases legislation has been drafted with a requirement for there to be a trade with conditions to deny or limit the relief for non-trading activities. In contrast IR applies to ‘businesses’ ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
