Incorporation relief may defer Capital Gains Tax when a sole trader or partnership transfers a genuine business and its assets to a company in exchange wholly or partly for shares. The transfer generally needs to be of the business as a going concern, and a business that mainly holds investments may not qualify; property letting businesses can be particularly fact-sensitive. The gain is usually rolled into the shares, reducing their acquisition cost, so the tax is deferred rather than cancelled. Check current HMRC guidance and consider professional tax advice, as valuation, liabilities and any cash or other consideration can affect the treatment.