BATR on sale of fees

BATR on sale of fees

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Please would anyone be able to supply further advice?
A block of fees is being sold by sole trader in the current tax year with proceeds being paid in two tranches one in current year (2007/08) and second in 2008/09.

Research seems to confirm that HMRC tax the two tranches on the earlier date ( 2007/08) and after BATR and annual exemption CGT is paid thereon.

The second tranche would be received in 2008/09 subject to clawback. An error and mistake claim or amendment to the tax return for 2007/08 could then be made if the second payment was lower due to clawback.

My feeling is that if HMRC tax the sale by treating the two amounts of sale proceeds as relating to the earlier date ( 2007/8) when the contract was signed then BATR would still be allowed in full even though the two payments spanning the tax years whereby differing tax rules apply to BATR.

Has anyone had experience of this situation please?
Solly

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