Capital gain on sale of soletrader business

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Hi

A friend of mine has sold her sole trader ladies fashion business. She made a loss of £898 on the final year of her business. Sale proceeds were 50K with 3K put into the accounts to dispose of the equipment assets so that left 47K sale proceeds, she paid 480.00 in solicitor fees. I take it the capital gain would be 46520 is that correct? I think she can claim entrepr relief but can she offset the loss made also?

There was no goodwill on the business to start with and the stock at the year end was 8K but no closing stock was put in the business accounts.

She's confused - i'm confused  - not sure if shes done things right. Any help will be appreciated.

 

 

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By dalecadet
26th Jun 2017 15:48

Yes

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By johngroganjga
26th Jun 2017 15:54

Are you sure she gave away the stock? And is she really reporting a trading loss to HMRC when in fact she made a profit when the understatement of stock is corrected for?

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Replying to johngroganjga:
By Ruddles
26th Jun 2017 16:16

Agreed. CTA 2009 s165(3).

Having said that, the sums aren't huge and HMRC will get their pound of flesh when the purchaser sells stock with no base cost.

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