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IFA trail commission

I am an IFA and am selling my business which is comprises the right to access my client bank and 'trail' commission on products I have sold in the past. In other words I have received a lump sum representing discounted cashflow from an industry purchaser. How should I declare this?

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25th May 2012 18:58

Ifa sale
This would be a capital transaction. You may be entitled to entrepreneur's relief on the sale (depends on the circumstances). So on your tax return you need to show a capital disposal, you'll also need to prepare a cessation set of accounts up to the point of sale. This all assumes you're trading as an individual. You could use your ifa skills and role the gain into a eis or Vct investment if you like a bit of risk and avoid the tax altogether :)

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