Sold Business, doing last tax return

Partner has sold business and need advice as to how to put this through her tax return

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My partner sold her business at the end of last year. It was a takeaway business.

The original purchase price of the business was £55,000, 10 years ago and she sold it for £30,000 in December 2017.

I am writing up her last set of books and I am not sure where to put the £30,000 sale proceeds. Is this treated as turnover (but would put her over the VAT threshold) or is it only used for the Capital Gains Computation?

Replies (7)

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By johngroganjga
12th Feb 2018 12:28

It's not turnover.

All you need to do is to make sure that the business sale proceeds figure is clearly highlighted in the book-keeping you give to the accountant. I am sure you can safely leave all the other niceties to them.

Best to keep it simple.

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Replying to johngroganjga:
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By Accountant A
12th Feb 2018 13:19

Quote:

It's not turnover.

All you need to do is to make sure that the business sale proceeds figure is clearly highlighted in the book-keeping you give to the accountant. I am sure you can safely leave all the other niceties to them.

Best to keep it simple.

What accountant?!

Describes as "My business" but then as partner's business in consecutive lines. And also "her books" but then "put me over the VAT threshold".

Definitely a case for professional advice. And we don't know what the £55,000 and £30,000 was for. Goodwill, lease, equipment ...?

Just another day on Any Answers.

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Replying to Accountant A:
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By Portia Nina Levin
12th Feb 2018 13:22

I think possibly the wife typed the headline, and then hubby took over from there.

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Replying to johngroganjga:
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By Portia Nina Levin
12th Feb 2018 13:21

Quote:

It's not turnover.

But it may (or may not) be a taxable supply.
As you indicate though John, Anonymous's wife's accountant will be best placed to advise.

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Oaklea
By Chris.Mann
12th Feb 2018 13:46

Regretfully, in carrying out our work, we rely on accuracy and, specifics. It's usual that we deal with people, who we can identify with.
On the one hand, you mention your "partner" but, further on in your enquiry, you suggest that 'but would put me" over the VAT threshold'?
Do you mean your partner, or you?
Hopefully, from what you say, you are merely writing up your partners, books and records and, hopefully not, completing her Tax return, after 6th April 2018? Please tell me that my assumption is correct?

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By Tim Vane
12th Feb 2018 14:23

The odds:

1000/1 - the OP is writing up his wife's books
100/1 - the OP is writing up his own books
1/9 - OP is an accountant posting anonymously because he is totally out of his depth

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Replying to Tim Vane:
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By Accountant A
12th Feb 2018 18:01

Quote:

The odds:

1000/1 - the OP is writing up his wife's books
100/1 - the OP is writing up his own books
1/9 - OP is an accountant posting anonymously because he is totally out of his depth

I think the game is given away by the words "... need advice as to how to put this through her tax return". He's not just "writing up her last set of books"; he's going to have a crack at completing the return.

Odds of the return being correct: 1,000,000 to 1.

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