Selling a business - including lease
A client (partnership) of ours bought a business in 2007 with a 15 year lease (which cost nothing, but legal fees of £3449) were incurred.
The business is about to be sold for £75,000 (including £15,050 fixtures as independently valued). The client is also paying a £3000+VAT "privity" fee to release them from the lease.
If the remaining £59,950 proceeds were split say £52,950 goodwill and £7,000 lease, could the £3449 initial legal fees on the lease (which were not initially claimed as an expense in 2007 and have sat on the balance sheet) and the £3,000 privity fee be offset against the £7,000?
Am I right in assuming that would all be caught under CGT rules?
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