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Disincorporation relief - What makes a qualifying transfer?


22nd March 2018

The transfer of a business out of a company will be a ‘qualifying transfer’ for the purposes of Disincorporation Relief if it meets all of the following conditions:

  • the business must be transferred as a going concern
  • the business must be transferred together with all the assets of the business or together with all the assets of the business apart from cash
  • the total market value of the qualifying assets at the time of the transfer must not be more than £100,000
  • the shareholders that the business is transferred to must be individuals
  • those shareholders must have held shares in the company throughout the 12 months before the transfer

Qualifying assets are interest in land (other than land held as trading stock) and goodwill (i.e. the reputation of the business).

This relief will end on 31 March 2018 so if you qualify then you need to get on with it if you are planning to disincorporate!

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