Buying a business - capital allow's and CGT?
Tax isn't my bag but I am trying my best to learn. There's one issue I haven't been able to get my head round.
Say somebody purchases an unincorporated business. The deal is £10,000 and this is for the general FFE of the business.
Does this transaction immediately have two implications with capital allowances and CGT?
I.e. the £10k is a business expense for qualifying capital assets. Thus, in year 1 the 10k can be claimed under AIA reducing profit.
Then, down the line, if the person sells the unincorporated businss they are liable to pay CGT on the proceeds less the original cost - ignoring any relevant reliefs.
The deemed cost would then be the original £10k the business was purchased for.
Is this right?
A massive thank you for any responses that are helpful and sorry to ask what must be for many a very basic question but as I said tax is not my strong suit at the moment.
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