Transfer Sole Proprietorship Business from Father to Son with Minimum / No Tax Implications.

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This discussion explores how a father, aged 65+, can transfer his sole proprietorship business, including assets like computers and machines, to his son. The advice suggests transferring the business as a gift, potentially on a simple £100 stamp paper, to minimise or avoid tax. It clarifies that while the sole proprietorship legacy (like IT records or bank ODs) ends with the proprietor, the physical assets and liabilities can be gifted to the son.

Sudip Chakraborty

Sudip Chakraborty (Querist)

28 May 2021 My age is 65+ my younger son looks after the business. I want to transfer the business in his name which will have minimum or no tax implications.
I have no Land or Building in the Balance Sheet but computers, Machines etc. & Current Assets.
There is no debt in the BS.
MSME registration is done in the Name of the Organisation.
GST Registration is not applicable to me. Please help me out.
Thank You.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 May 2021 Transfer the business to son as gift no tax payable.
In 100 Rs stamp paper record the transfer of business as gift in simple words that is enough.

CA Dhruva Kalamanji

CA Dhruva Kalamanji (Expert)

29 May 2021 Hi Sudip

The legacy of the sole prop ends at the termination of the proprietor, you can not carry the legacy like IT record, or any Bank OD granted in your name etc...

However the assets and liability can be transferred to your son by a way of gift as rightly said by the CA Seetharaman

should you have any further query please write to me at sthayin@gmail

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