Incorporation relief planning and illustration
You'll learn how to strategically plan incorporation relief by manipulating the consideration received (shares versus cash) to optimise your tax position.
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In this lesson
- 0:00 Incorporation relief planning overview
- 1:09 Manipulating relief with shares and cash
- 2:00 Preserving Badr relief on incorporation
- 3:39 Hannah's business disposal worked example
- 5:02 Calculating optimal share consideration
- 7:10 Electing to disapply relief for Badr
- 8:35 Two year election deadline explained
About this lesson
This video walks you through the core technique: fixing the non-share consideration so that your taxable gain equals your annual exemption and available losses, thereby deferring larger gains into the future with a higher cost base. You'll see a worked illustration with Hannah's IT business incorporation, including the algebraic method for calculating exact share and cash amounts, plus when to elect to disapply relief entirely to claim Entrepreneurs' Relief at a lower rate instead. This is a higher-skills topic highly relevant to ATX and SBL exam questions.
Duration: 9m
Transcript
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