One of my clients (sole trader) has sold one of his self employment businesses (a catering van) Total disposal proceeds were £4500, Am I right in thinking to allow for this via his capital allowance computations creating a balancing charge rather than CGT as he bought it and sold it for both less than £6000.
Pag. 158 AAT Business Tax FA 2012 says that any gain arising on the disposal is exempt from CGT if bought for £ 6000 or less and sold for £ 6000 or less.
I hope this helps but please note that I am quite a junior and other people with better knowledge than me will be able to give a more qualified and professional advice.
Have a good afternoon ! :)
Adrian
__________________
This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.
P.S. I only ride a motorbike because I want to dry my clothes faster
Some of it will be for the assets which you should dispose off and will result in either a balancing charge or allowance.
The remainder will be for the rest of the business eg stock etc. You need to compare that value with what is being sold and any excess will be goodwill and what will be taxed under CGT. You may be able to claim enterpreneurs relief if the relevant conditions are met but may not be needed if you client doesnt have any other capital gains in the year as the gain will be covered by their capital gains allowance.
