Incorporation and disincorporation
It is possible for a business to be commenced as a sole tradership or partnership and for that business to be transferred to a company at a later stage. That should be considered where losses are foreseen in the early stages.
Gains arising on the transfer of assets to the company can be rolled over, and there need not be any balancing charges under the capital allowances legislation.
On the other hand, there are no special reliefs on disincorporation. Therefore, there can be tax penalties if a business which was set up in a company is transferred out of the company to individuals.