Capital allowances on incorporation

I was interested in the article in Taxation 12 September 2002 at pages 652 to 654 by Roger Jones concerning capital allowances on the incorporation of a business with relevant planning points.

I have heard another planning point put forward which is that it is a good idea to create a loan account in the company (going down the non-section 162 Taxation of Chargeable Gains Tax Act route of incorporation) so that the proprietor can in future draw profits out without a tax consequence. To do this one would prefer to transfer machinery and plant at as high a value as possible; then to avoid the balancing charge in the sole trade an election under section 266 Capital Allowances Act 2001 would be made for the plant to be treated as transferred at written down value. So assuming...