Entrepreneur's relief, capital allowances & balancing charges

Andy2000
Andy2000 New MemberRegistered Posts: 9
I have a client (sole trader) that has ceased trading and sold 4 business assets,
3 of which had been written down to minimal amount (total £150),
1 has never had any capital allowances and stands in at £2,500
no goodwill sold

Total sale of these assets = £17,000

The assets qualify for Ent's relief.

Can someone remind me of the correct way to show the transfer

Is it as straight forward as transferring the above assets out at the WDV's and using this figure for the Ent's relief calculation..............so no balancing allowance or charges in the tax return?



Comments

  • KernowAccountant
    KernowAccountant Settling In Nicely Registered Posts: 120
    There is no "transfer". Entrepreneur's relief is a capital gains tax relief. The sale of business assets as described is, the the extent that sale proceeds don't exceed original cost, an income tax matter.
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