Incorporation plans

Entrepreneur’s Relief (ER) can reduce the CGT payable from 28 per cent to 10 per cent.

Heidi Marshall, a partner in specialist dental accountants Dodd and Co and a member of NASDAL’s main committee, said: “Dental practices with incorporation plans on the table will be hugely frustrated by this announcement as there are no transitional provisions.  The new measure has been introduced with immediate effect.”

However, Entrepreneurs Relief (ER) is still available when a dental practice is sold to a third party and there may be some select practices which can still benefit from incorporating. Those who are interested should discuss with their NASDAL accountant.

Heidi continued: “Alongside the surprise measure denying ER on disposals of goodwill to related companies, the Chancellor also introduced a restriction on Corporation Tax deductions for goodwill acquired from a related party on incorporation.  The restriction applies to transfers on or after December 3 2014. Companies already receiving relief for goodwill recognised on incorporation will not be affected.”