goodwill on incorporation

[Jambo55]

Hi all, just some advice please:

a sole trader recently incorporated his business, which had a pretty good level of t/o circa 600k but makes circa 40k profit of which I would consider that to be a wage to the sole trader / proprietor and add to this that like many small businesses the owner IS the business. On this basis I am suggesting that when the business is transferred to a limited company it has close to no value (perhaps circa £5k but I do think I could justify anything larger, nothing notable in the way of fixed assets etc) - does this sound sensible / acceptable? Also I guess this suits the sole trader who would have a CGT liability should the transfer value of the company be inexcess of 10k (although I accept this will be partly offset by the goodwill created within the ltd co)

Just a sense check please - all comments welcome! Thanks, JmB

[GlobalTaxAdviser]

There used to be some tax benefits in terms of profit extractions when transferring a business from sole trader to ltd company but the recent Autumn statement stopped this practice.

Kind Regards

Sash