Where you dispose of business assets on or after 3 December 2014 to a close company in which you are a participator you cannot claim entrepreneurs' relief on the gain from the sale of the goodwill of the business. You can claim ER on the disposal of other business assets. Take a look under the heading "Disposal of goodwill of your business" in HS275 here. The definitions of a close company and a participator can be found here.
If you incorporate your business you can defer any CGT charge until a disposal of the new business by claiming incorporation relief. Look here for more information.
I hope this helps but let me know if you have any further questions.
The 3 to 4 times the annual fees would be the value of the goodwill and you cannot claim ER on that by transferring it to your own company. In order to avoid paying CGT, you would claim incorporation relief.
That's all correct apart from the CGT rate. From 6 April 2016, there are new CGT rates for non-residential property gains of 10% and 20% as you can see here.
Drawing down on a director's loan account is acceptable practise.
When you claim incorporation relief, you defer the CGT charge. See the first example here. If you defer a gain of £400,000, the cost of the shares (£400,000) you sell in the future is reduced by the deferred gain, £400,000 in your case. So, at 20%, your CGT would be £200,000.
You would probably be able to claim ER on the sale of your shares so you would pay CGT at 10%, £100,000 (£1,000,000 - (£400,0000 - £400,000) @ 10%).
The gain is only deferred. It does not go away. The cost of the shares in the new company is reduced by the deferred gain.
If you don't defer the gain, you will pay CGT on £400,000 at 20%, £80,000. The cost of the shares will be £400,000 so if you sell them for £1,000,000 you will make a gain of £600,000 on which you will pay CGT at 10% (£60,000) if you do qualify for ER or at 20% (£120,000) if you don't qualify for ER.
If you defer the £400,000 gain and sell the shares for £1,000,000, they will have £0 cost and if you don't qualify for ER, you will pay CGT at 20% or £200,000.
If you defer the £400,000 gain and sell the shares for £1,000,000, they will have £0 cost and if you do qualify for ER, you will pay CGT at 10% (the ER rate) or £100,000.
Yes, you have.