Owner as sole trader and Limited company director

[rehaneesa]

Dear All
I am new to this web, I say hello to all, hopefully we can all work together to help each other out.
As I am not tax expert, I have a scenario where this sole trader also has his limited company.
I want to know if it is allowed for the limited company to invoice the sole trader business for services?
Also if this is legal for the sole trader business to be disposed to the limited company - only sole trader asset is goodwill which I think is eligible for entrepreneurial relief and lower CGT rate?
Your help will be much appreciated.

Rehan

[bd6759]

Ltd can invoice director in limited circumstances. Usually for services provided to the company in connection with the directors existing trade, but not in connection with the companies trade.

For example the company could invoice directory for providing catering at a board meeting if the director had an existing catering business. But not if catering was the primary business of the company.

If the trader disputes of his business to the company the trader will no longer be trading independently. Goodwill might be transferred; it depends on the nature of the goodwill. BADR ( previously ER) is not available.