Q&As

What are the potential tax implications for an unincorporated association incorporating into a company limited by guarantee and transferring all of its assets into said company?

read titleRead full title

Published by a ³ÉÈËÓ°Òô Tax expert
Published on: 23 June 2021
imgtext

We have assumed that the assets and all relevant parties are in the UK.

An unincorporated association is subject to corporation tax in accordance with:

  1. •

    section 2 of the Corporation Tax Act 2009, which imposes corporation tax on Profits of companies (which includes chargeable gains), and

  2. •

    section 1121 of the Corporation Tax Act 2010, which defines a company as including an unincorporated association

Therefore, unless any reliefs are available, the unincorporated association will be subject to corporation tax on any chargeable gains or profits it generates on the disposal of its assets to the company limited

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Company limited by guarantee definition
What does Company limited by guarantee mean?

A company limited by guarantee is a company whereby the liability of the members is limited to such amount as the members undertake to contribute to the assets of the company in the event of its being wound up.

Read more

Popular documents

Outsourcing and VAT

Outsourcing and VATTo reduce costs and increase efficiency, businesses increasingly sub-contract parts of their work to third parties. This is colloquially known as ‘outsourcing’. There are no specific laws, including tax laws, applicable to outsourcing arrangements and no technical legal meaning of

Tax implications of establishing a joint venture partnership

Tax implications of establishing a joint venture partnershipThis Practice Note considers the UK tax aspects of the establishment of a joint venture operated through a partnership. It is assumed for the purposes of this Practice Note that:•the joint venture parties are UK tax resident corporate

Partnership losses

Partnership lossesThis Practice Note is about the calculation and use of losses (other than capital losses) made by general partnerships, limited liability partnerships and limited partnerships. For information on capital losses generally, see Practice Note: Capital losses for businesses.Computation

Would a limited liability partnership be classified as a company for the purposes of determining

Would a limited liability partnership be classified as a company for the purposes of determining connected persons under section 1122 of the Corporation Tax Act 2010? What about a limited partnership?Section 1123 of Corporation Tax Act 2010 (CTA 2010) defines ‘company’ for the purposes of CTA 2010,