Transferring stock or work in progress to a limited company
If you incorporate a business stock or work in progress should be valued at the higher of cost or market value. This could trigger a large tax bill on unrealised profits.
It is better to make an election so the company takes over the stock or work in progress at the lower of cost or what it pays for it. In this way, when sold, the profit will only be taxed at 20% rather than up to 45% (plus Class 4 national insurance at the appropriate rate).