The asset cap on the proposed disincorporation relief should be scrapped, the Association of Taxation Technicians (ATT) has told HMRC.

The effectiveness of the new measure – created to enable businesses to change their legal form from a limited company to self-employed without suffering a tax disadvantage – will be compromised by blocking firms with assets worth more than £100,000, claims the organisation in official response to draft provisions set out in the Finance Bill.