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.
- Foreign income on Self Assesment 220 1
- What aspects of accountancy/book-keeping most trouble people 113 2
- Dividend paid to non-shareholder 172 4
- CIS gross status review 73 1
- Notes needed for a new partner in an LLP 115 2
- Dividend payments to spouses 335 6
- Flat rate vat error 231 5
- Whats the best way to keep my accounts? 109 5
- How do I clear transaction history - Sage 50 v9 131 2
- Whats the best way to keep my accounts? 61 1
- Property versus Trade in a Ltd Company 126 4
- When will Private Principal Residence Relief cut will start? 348 8
- Snotty HMRC letter - continued 599 17
- Dispensation pointless ? 258 4
- Accountant Pays Clients Tax 599 11
- Are bankruptcy restrictions order becoming more common? 196 4
- Charge out rates in London? 199 2
- Accounting jobs in the UK 109 1
- Negative retained earnings & Dividends 172 3
- pre letting expenses 153 2
- Desperately seeking Susan, Sam or anyone with any other name 745
- Experience with Islamic investor following Sharia-compliant rules? 478
- Darwinpay Partnership Assessment 294
- How to format a stock book 256
- S464A Charge to tax: conferring benefit & BIK 208
- Tax efficient holding company structure 197
- Investment property company accounts template 186
- Outlook 2007 with business contact manager not loading on new laptop 182
- auto enrolment - calculation of first pension deduction 166
- Sage 50 Customer Statements and Running Balances 150