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.
- EBT via Payroll 119 1
- Companies House late filing penalties 2,189 75
- Worried over stock value 251 5
- anyone using Office365 for practice management 870 24
- Sole Trader using Tax Losses 272 12
- What is Tronk System of payroll ? 121 2
- Tax return filed on time but payment late 196 3
- Company name change question... 173 3
- Writing down allowance / AIA 186 6
- Non-SA client with large capital gain 439 14
- Help needed- Unable to fill CT600 form using HMRC software- service issue 263 4
- RTI Annual Scheme 1,317 23
- how to reduce student loan payments - taxfiler 191 5
- Consolidation IFRS 72 1
- White van man 474 20
- foreign income 133 2
- Window Comb Binder Cover 314 5
- STUDENT LOAN 123 1
- Bookkeeping question 612 6
- wave software 237 2
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 835
- Copy Wanted 556
- Underpaid VAT assessment and relation to SATR 512
- Did you realise Google will not patch android exploit ... 491
- Latest phishing scam 354
- Entrepreneurs' relief 331
- Supply teachers and Ltd Companies 297
- Cashback for opening business bank acct = trading income? 289
- Corporate LLP with 30 June Year end - How to record on SA800? 283
- Auto Enrolment Questions Answered 187