I am in the process of selling a restaurant for £25,000, £5,000 of this is for second hand equipment etc. The remaining £20,000 is the sale of the lease as there is no goodwill. The lease was a new lease from the landlord. How do I calculate the capital gains tax?
Thanks
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I am not sure this is the best place to ask. I would contact your account for advice. After all would you give out free meals in your restaurant?
Just took a look at some of your previous posts it dose seem you are a accountant. https://www.accountingweb.co.uk/any-answers/trading-losses-in-limited-co...
I would suggest you pass this on to someone who can deal with the issue for you.
What, if anything, was paid to acquire the lease in the first place?
I think (not something I often deal with so you certainly want to confirm this) that your base cost re CGT is any premium paid on acquisition, insofar as not considered/ treated as rent under TCGA1992 Sc8.
In addition it is any enhancement expenditure to the property not otherwise relieved which is being passed to the assignee.
Good article here from 2011:
https://www.taxation.co.uk/Articles/2011/08/10/278681/leases-unleashed