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Entrepreneurs relief

Entrepreneurs relief

A client ceased trading and sold an asset(a crane) which had been depreciated over several years which raised a profit of 35,000 which would normally raise a balancing charge but would there be any possibility of claiming entrepreneurs relief?

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17th Jan 2013 17:46

Income Tax v Capital Gains Tax

Entrepreneurs Relief is a Capital Gains Tax Relief, whereas the balancing charge is an adjustment to taxable profits and therefore subject to Income Tax.  If, however, there was a Capital Gain because the asset was sold at more than the original cost then it might be possible to claim E-Relief on that gain depending on the circumstances of the disposal and cessation of trade.

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18th Jan 2013 16:03

Entrepreneurs relief

Thanks for your reply.

The Crane was sold to pay off tax debts but leaves him out of work and has landed him with a hefty tax debt.

 

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