Succession of trade to connected party
You'll learn how capital allowances work when you transfer your business to a connected party, and why making a succession election can significantly reduce your tax burden.
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In this lesson
- 0:00 Business cessation to connected parties
- 0:16 Plant machinery transfer at market value
- 0:44 Succession election and tax written down value
- 1:18 Who qualifies as a connected party
About this lesson
This lesson covers the key difference between market value transfers (which trigger balancing allowances and charges) and succession elections (which allow transfer at tax written down value with no capital allowance implications). You'll discover who qualifies as a connected party and how to apply this relief within the two-year window after cessation. Essential for understanding tax-efficient business transfers in your Advanced Taxation studies.
Duration: 2m
Transcript
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