Capital Gains Tax Question

T.C.

My client owned a van and some tools in his business, claiming capital allowances each year. He sold the business and emigrated. Can I take the balance of the capital allowances against the CGT liability for the sale of the business? Anything else I should be noting as this is a really simple sale? Thanks for any and all input.

groundy

The sale of the business will need to be split between assets and goodwill. The sale of the van will then be put through capital allowances for the final tax comp and the goodwill will be a capital gain subject to any exemptions. You can not offset the capital allowances against the capital gain.

jamesm96

Sorry, I know this doesn't really answer your question, but would it not depend on whether he sold the business as a going concern vs selling the individual assets?

jamesm96

Ah! I posted my reply before I'd seen Groundy's.

T.C.

Thank you. One other thing - Entrepreneurs Relief - I think he should be able to claim this. Has anyone else used this? Can I put this on the TR or does it have to be done separately in writing? Can I submit the TR before this is done?

groundy

Depending on the software you use there is usually a box to tick to claim the entrepreneurs relief if allowable

Monsoon

You can do ents relief on the tax return, yes.

T.C.

Thanks everyone, you have been most helpful. :001_smile: