A client has sold his internet business. He has no assets so it was just a tranfer into his account for the sale proceeds.
Does this get treated as pure income or is there anything to offset against it.
Thanks
Craig Smoth
Replies (2)
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Possibly trading income
I have a client who buys and sells websites and know that this is not uncommon. This would therefore make it trading. The websites are established money making websites selling google ad words. Apparently they go for between 15 and 20 months turnover.
Oh yes he did.
So what did he sell?
He must have sold Goodwill (which last time I checked, was an assets).
It's not income it's a capital gain, subject to the usual reliefs, exemptions etc.