In relation to the cessation of a sole trader with a year ended 31/12/10, date of cessation Apr 11 what are the appropriate rules for assessment for tax purposes.
The owner has bought the stock and van, all creditors/debtors cleared and the business had a net profit in 2009, losses in 2010 and losses to date of cessation.
Are accounts then prepared from the 1st Jan 2010 to date of cessation and returned on the income tax return which would be a 15 month period.
I take it that the assets are disposed off at market value to the owners capital account and any gain/loss on disposal is charged to the P/L.
