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9 Cards in this Set
- Front
- Back
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What are the requirements for SSE? |
- 10%+ owned for 12 months - Trading company Automatic and compulsory - no elections to be made |
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What are the requirements for BADR? |
Sole trader or Partner Selling their business Hold 5% for at least 2 years |
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What is Incorporation Relief? |
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What is the base cost of assets when using No Gain No Loss (NGNL)? |
Base cost = Original cost + Indexation |
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What happens in a Hive-down? (A transfer within 75% group followed by Sale) |
- Assets transferred at NGNL - Plant and machinery transferred at WDV - No SDLT in 75% group (unless sold within 3 years) - Likely no VAT as either TOGC or in a VAT group |
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What is a MCINOCOT? |
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Treatment of Loan Interest on loan to purchase company: |
Income tax relief providing: - Close company purchased (5 or less shareholders or just directors) - Individual works full time in business or owns more than 5% - Relief is capped at £50k or 25% of total income |
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Impacts of Company Migration: |
UK resident moves management and control overseas
Stock, P&M and chargeable assets = Treated as sold at MV
Leading to trading profits, balancing allowances/charges and Gains
Terminal loss relief available if losses made in final 12 months No deemed disposal on UK assets! |
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Conditions for TOGC and therefore outside the scope of VAT: |
- Assets transferred are capable of separate operation - Assets are used by New company in same kind of business - New company is VAT registered - No significant break in trade |
