tax on selling business

[Guest andylynnchriskirst]

Hi all, we are hoping someone was in the same situation as us and might be able to help. We have just had an offer for our business which i built up from start 8 years ago, for the amout of £60,000, this is not a limited business and most of the value(approx 90%) is good will. Alittle bird tells me we might get clobbered for tax...

Has anybody else sold a private business in uk then moved to Adelaide? was it a painful experience? and is there a way to avoid being stung? Your kind advice will be very helpful.

[Guest Guest75]

It'll be Capital Gains Tax that hits you.

 

You really need to discuss this with your accountant.

 

Yes you might be in the thresh hold and pay tax but with winding up and moving you could have a lot of other offsets??

 

CGT used to work on a sliding scale - it went down 10% each year. Had our last business 12 years so no CGT,think the Govt realised they were missing out and abolished this now!!

[Guest Aussie pat]

Aussie pat's other half here

 

Have a look at this section of the HMRC website - HM Revenue & Customs: Capital Gains Tax for businesses. Make sure you put CGT in upper case. Have a look at entrepreneurs' relief as well.

[Guest Aussie pat]

Forget about the CGT in upper case. Good old PIA has converted the www address.

[snivag]

I think the OP is talking about selling a business in the UK.

[Guest Aussie pat]

Yup, the link is to the UK tax authorities website.

[Sallyh]

Can't remember how you best need to apportion the purchase price, but basically you need to get your accountant to do it. He needs to give you a realistic apportionment and then you'll need to have an asset sale agreement which will set it out. If it's ridiculously biassed to avoid tax, then you will I am sure have to pay the right amount. I think you will have to have the document stamped, in which case they will see the apportionment.

 

Rusty and foggy but basically defer to your accountant, and get a doc drawn up by a solicitor.

[Guest andylynnchriskirst]

Ok, thank you all for info, looks like the taxman will get a new car and holiday this year...