Skip to main content
Toggle search
Menu toggle

Tax breaks: will the sun set on disincorporation relief?

Few people seem to be claiming disincorporation relief when they convert from a limited company to sole trader or partnership status. Stephen Relf ACA CTA, specialist tax writer at Croner-I, examines how it works and whether it makes sense to take advantage of this tax relief

Disincorporation relief is unusual in that it is subject to a sunset clause: the relief is unavailable for business transfers on or after 1 April 2018. To date, the government has not commented on the future of the relief but the signs are not good. As at 31 March 2016, only 50 claims had been made for the relief.

The Office of Tax Simplification (OTS) has published a paper on disincorporation relief in the hope of stimulating debate about whether it is achieving its purpose.

Your free features:

  • Breaking news and expert analysis
  • Customisable daily newsletters
  • Six free CPD learning modules each year
  • Personalised CPD tracker
  • Top 75 Firms league tables
  • Regulatory changes
  • Hardman’s Tax Data

Sign up to Business & Accountancy Daily

Related Articles
Subscribe