Capital Gains

GemmaLouise

Think i am being abit thick but here goes...

It says in my notes that if the sale is in the course of trading the disposal is exempt - so why in all the questions do they dispose of assets and yet a capital gain is calculated - when it is in the trading year????

Any help would be much appreciated!!

Gemma

Marg22

Hi

Your notes are referring to the buying and selling of goods in order to make a profit. For example a timber merchant would buy wood and then sell it in order to make a profit. This sort of income is liable to corporation tax or income tax depending on whether it is a Ltd co. or sole trader.

The selling of the business assets is quite another matter and needs to be assessed to see if it is liable to capital gains tax.

Hope this helps a bit.

Marg