Guest andylynnchriskirst

tax on selling business

    Recommended Posts

    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.:arghh:..

    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.

    Share this post


    Link to post
    Share on other sites
    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!!

    Share this post


    Link to post
    Share on other sites
    Guest Aussie pat

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

    Share this post


    Link to post
    Share on other sites

    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.

    Share this post


    Link to post
    Share on other sites
    Guest andylynnchriskirst

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

    Share this post


    Link to post
    Share on other sites

    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now