Readers’ forum: Business assets transfer

My client is a self-employed local builder and he has managed to keep operations going reasonably well during the coronavirus pandemic.

He carries out work for private individuals and subcontracts for larger building firms. He owns a building yard and some reasonably expensive specialist equipment.

Given financial uncertainties and his increasing reliance on other companies for work he asked whether he could protect his capital assets. It did occur to me that he could transfer the yard and plant and machinery to his wife – who at present simply assists with bookkeeping and the like. I thought he could then pay her a rent and hire charge. This might help to even up their incomes a little and reduce tax.

The alternative would be to form a limited company to hold these assets perhaps again with the involvement of his wife.

Other than whether this...