You need to look at the rules around cessation of an unincorporated business as the reality is that even though this is a transfer the underlying reality is that one business is ending and another beginning.

The disposal of the business by way of incorporation represents a disposal for capital gains purposes. Various reliefs are availble (i.e. Incorporation relief, Rollover Relief, Entrepeneurs relief, 6k chattels exemption, Capital losses, etc.)

Note that assets between connected persons (owner and company) are transferred to the new entity at their written down value, not their open market value.

No AIA's or FYA's are available on incorporation but WDA's based on the transfer value are available (taking all above into account).

Who told you that no WDA's were available at all? they may have been getting mixed up about the transfer at written down value rather than no WDA's as such.

This can be a complex area dependant upon the specifics of the businesss being incorporated. Rather than there being and chapter and verse crib sheet type approaches the tax effects of incorporation require a general all round advanced level of tax knowledge.

The above reply does not constitute advice and is simply to demonstrate that you have been given poor advice over the WDA's and as such is intended for your personal knowledge base going forwards. The actual resolution of the tax issues around incorporation should be left to the accountant who incorporated the business for your client.

HTH,

Shaun.