Good afternoon all,
I wonder if anyone can point me in the direction of an answer for this scenario please.
A sole director/shareholder sells his LTD business to someone else. An SPA is signed, shares transferred and cash agreed. All is good and I understand the tax implications of that.
Subsequently the new owner uncovers various issues not declared at point of sale and claws back part of the sale value - my question now is, is the outgoing client still taxed on the original sale value, or can the clawback be taken into account as a reduction?
Logic wants to say it's now the lower value, but tax rules don't always follow logic....
I appreciate this is a very busy time of year so I appreciate anyone who has the time to point me in the right direction.