Disincorporation Relief to Move Your Business Out Tax-Efficiently
Thinking about moving your business out of a limited company? ABM Chartered Accountants provides specialist disincorporation planning, helping you transfer assets to a sole trader or partnership structure while managing the tax consequences at every step.
Transfer Your Business Out With Tax Clarity
Disincorporation is the process of transferring a business and its assets out of a limited company to its shareholders, who then continue trading as a sole trader or partnership. The tax implications can be significant, covering corporation tax on asset disposals, income tax on distributions, capital gains, VAT, and PAYE.
Our ICAEW and ACCA qualified accountants review your full position before any transfer takes place. We assess the value of your assets, plan the most tax-efficient route for both the company and its shareholders, and handle the compliance from final corporation tax return through to company closure.
What Our Disincorporation Service Covers
From assessing the tax impact to closing the company, here is how ABM Chartered Accountants helps you move your business out of a limited company structure.
Tax Impact Assessment
Full review of the corporation tax, capital gains, and income tax consequences of disincorporation.
Asset Transfer Planning
Structuring the transfer of goodwill, property, stock, and plant to minimise the overall tax cost.
Valuation Support
Professional valuation of business assets to establish market value for the disincorporation.
Shareholder Tax Planning
Planning how distributions are treated for shareholders to reduce income tax or capital gains tax.
VAT & PAYE Transition
Managing the transfer of VAT registration and PAYE obligations from company to your new structure.
Company Closure Support
Guidance on striking off or voluntary liquidation once the business has been fully transferred.
Avoid Unexpected Tax When Changing Your Structure
Moving a business out of a company triggers tax at multiple levels. The company faces corporation tax on asset disposals at market value, even if no cash changes hands. Shareholders face income tax or capital gains tax on what they receive. Without proper planning, the combined tax bill can be substantial.
ABM Chartered Accountants plans each step of the transfer to reduce the overall tax exposure. We consider the timing, the method of closure, the treatment of distributions, and the available reliefs, including Business Asset Disposal Relief where applicable. The result is a cleaner, cheaper exit from your company structure.
Disincorporation Planning for Companies Right Across the UK
Based in Canary Wharf, London, ABM Chartered Accountants supports company directors throughout the UK who are considering moving their business out of a limited company structure.
Disincorporation Advice for Every Business Type
We advise on disincorporation for businesses in professional services, retail, construction, hospitality, property, healthcare, and technology. Whatever your industry, our team ensures the transition is handled with full tax awareness.
Why Directors Choose ABM for Disincorporation
Chartered Tax Planning
ICAEW and ACCA qualified with business restructuring experience.
Every Tax Considered
Corporation tax, CGT, income tax, and VAT covered.
Start to Finish
From tax assessment through to company closure handled.
How We Work
Initial Consultation
Set Up and Onboard
Ongoing Support
We provide regular reviews and proactive advice to keep your finances optimised and HMRC-compliant.
Get in Touch Today
Whether you need help with your tax return, payroll, VAT, or business advisory, our qualified UK accountants are ready to provide clear, practical guidance for your specific needs.
Book a Consultation
Fill in the form below and one of our expert accountants will contact you promptly to discuss your accounting and tax requirements.
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Frequently Asked Questions
Here are answers to the disincorporation questions we hear most often. Contact our team for tailored guidance.
What is disincorporation?
Disincorporation is the process of transferring a business and its assets out of a limited company to its shareholders, who then continue operating the business as a sole trader or partnership. The company is typically closed afterwards through striking off or voluntary liquidation.
What tax does the company pay on disincorporation?
The company pays corporation tax on any gains arising from the transfer of assets to shareholders. Because the transfer is between connected parties, market value is used even if no cash is paid. ABM Chartered Accountants calculates the exposure and plans to minimise it.
Do shareholders pay tax as well?
Yes. Shareholders may be liable to income tax on distributions received from the company, or capital gains tax if the company is formally wound up through voluntary liquidation. The method of closure directly affects which tax applies and at what rate.
Can Business Asset Disposal Relief apply?
In some circumstances, yes. If the company is wound up through a members’ voluntary liquidation and the shareholder qualifies, Business Asset Disposal Relief may reduce the capital gains tax rate to 10% on up to one million pounds of qualifying gains.
What happens to the company's VAT registration?
If the business continues as a sole trader or partnership, the VAT registration can be transferred to the new entity. Alternatively, the company can deregister and the new business can register separately. ABM Chartered Accountants manages the transition for you.
How much do your disincorporation services cost?
Fees depend on the complexity of your company structure, the value and type of assets being transferred, and the method of closure. We offer transparent, fixed-fee pricing. Contact ABM Chartered Accountants for a tailored quote.