½Û×ÓÊÓƵ

The Incorporation ― introduction and procedure guidance note details some of the key reasons why an unincorporated business may wish to incorporate. From a tax perspective, there are two key factors that will apply to all businesses considering incorporation:

1. •

   a different effective rate of tax on extraction of profits

2. •

   flexibility over income in respect of the timing and form of remuneration

In addition to these general factors, there will often be specific tax issues which may benefit particular business circumstances. There are a number of reliefs that are not available to unincorporated businesses. These reliefs may either relate to the taxation of the business’s profits or to its investors.