Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
It is really very easy. Just obtain a ready made company from one of the many agencies. Then close your books and obtain a trial balance. This will give you the opening balances in the company's books of account and everything is transferred across. You will, of course, have to take up with your bankers the change of account titles and numbers. Simple, as the Mercat in the TV advert would say!.
There is no liability to Capital Gains Tax (CGT) at this stage as you would be entitled to Incorporation Relief. This relief postpones any CGT liability until you ultimately dispose of your shares in the company at some future, indeterminate date.
I do hope that I have been able to clear the air for you in this matter.
That is a matter for your bank and they will probably open new accounts for the company and close your business account.
As for the transfers of equipment, stocks etc then a simple note to yourself and the company authorising the transfer will suffice. Remember that in a company the company, its shareholders and directors are all separate legal entities. You will have to contact clients direct to advise them of the change. Any loss made can be offset against any other income tax liability in the relevant year for tax purposes.
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Thank you for your support.