Loose Ends

Loose Ends

Stamp duty on gifts
Section 119 Finance Act 2000 (transfer of land to a connected company) has been usefully referred to in a number of publications but unfortunately continues to cause problems.
For a number of years advisers have come to see sections 162 (incorporation of a business) and 165 (hold over relief) Taxation of Chargeable Gains Act 1992 as alternatives for incorporating sole trades and partnerships and avoiding an immediate capital gains tax liability. Although there are often competing considerations which need to be carefully weighed up one of the happy differences between the alternative incorporation routes has been the ability to use section 165 to transfer an asset such as land and buildings to New Co holding over any capital gain and in the process keep the client's stamp duty liability to a minimum. Using section 162 this is...