Incorporating and Disincorporating a Business
Incorporating and Disincorporating a Business gives clear guidance on the pros and cons of incorporating a business, giving the reader practical advice on the tax and legal implications and how to successfully navigate the process of incorporation. It also gives guidance on disincorporation and why this may be necessary and best practice when going through this process.
Incorporating and Disincorporating a Business adopts a user-friendly layout with each chapter including ‘Signposts’ at the beginning, ‘Focus’ points to highlight important considerations, checklists and worked examples throughout. Appendices include standard claims, elections and proformas to make it even more practical for users.
There have been significant changes to incorporation in the last 5 years. The announcement in the 2013 Budget that the corporation tax rate will be further reduced to 20% in 2015 and the introduction of the Employment Allowance in 2014 (so that many businesses will no longer pay employer’s NIC) mean that many sole traders may look more closely at the benefits of incorporation.
Disincorporation relief is currently very topical as a time-limited disincorporation relief has been introduced in the Finance Bill 2013 (to take effect from April 2013), which removes certain tax barriers that existed when companies transferred from an incorporated to a sole trader or partnership status. This is particularly relevant to small companies and the book explains what businesses need to know about the new rules.
Part 1 – Incorporating a business:
Section A: Deciding whether to incorporate:
1. Business structures;
2. Why incorporate?
3. Advantages and disadvantages of a company;
Section B: Tax consequences of incorporation:
4. Income tax and cessations;
5. National insurance contributions;
6. Capital Allowances;
7. Capital gains tax;
8. Stamp duty land tax;
9. Inheritance tax;
Section C: Other issues:
12. Legal issues;
13. Other considerations;
14. Assets held outside the company;
15. Extracting profits from family and owner-managed companies;
16. Close companies;
17. The settlements legislation;
18. Employment status;
19. Investment business;
Part 2 – Disincorporation:
20. Why disincorporate?
21. Tax issues for the company;
22. Tax issues for shareholders;
23. Disincorporation relief;
24. Dissolving the company;
25. Liquidating the company.
|Author(s)||McLaughlin, M and Ray, P|