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Reliefs available on part disposal of business

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I have a client (Ltd) who has developed a digital platform as part of his business which has now been sold.

The only costs would have been his labour and expertise and these haven't been documented. 

He is now working for the firm that bought the platform whilst running the rest of his company.

Are there any releifs I can claim to reduce his tax bill this year?

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By kaff
15th Jan 2022 17:54

Too many questions unanswered. Your post implies that the shareholder developed the platform for the company (i.e. he was working for the company), but without the company paying him for his labour and expertise. Or did he develop the platform then transfer it to the company once completed? Was the company trading and revenue-generating prior to the disposal of whatever was actually disposed of? And then what has actually been sold and by whom? - the shares in the company by the shareholder, or the business by the company, or part of the business by the company (as your title suggests)?

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By I'msorryIhaven'taclue
15th Jan 2022 20:18

kaff wrote:

Too many questions unanswered.

Surely

kaff wrote:
Your post implies that the shareholder developed the platform for the company (i.e. he was working for the company), but without the company paying him for his labour and expertise. Or did he develop the platform then transfer it to the company once completed?

If that was the case - that our protagonist developed the platform in the company's time (and always assuming that he / she was an employee) then surely the development belongs to the company. For my money, it all depends upon whether he / she developed this as a separate project (and in his own time) or as part of his duties (and perhaps in his own time, or perhaps in the company's time).

The subsequent sale of the company, in the absence of anything specific within the contract to refute the matter, would as a starting point transfer any existing rights to the purchasing company.

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By Calculatorboy
15th Jan 2022 18:41

If you are in practice..surely you know gains on intangibles are included in business income and taxed at corporation tax rates ?

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By Wanderer
15th Jan 2022 20:13

I think you may be confusing who you say has made a 'part disposal of business' (the company) with reliefs available for individuals?
Anyway it's the company's tax bill, not 'his'.

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By Hugo Fair
15th Jan 2022 20:38

Sounds like yet another client who is (or has chosen to remain) oblivious to any distinction between the two entities of 'my' limited company and 'me' (the individual taxpayer). If so, this is unlikely to be the only grenade waiting to go off ... merely the most obviously immediate one.

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