I wonder if anyone can point me in the direction of an answer for this scenario please.
A sole director/shareholder sells his business to someone else. An SPA is signed, shares transferred and cash agreed. All is good and I understand the tax implications of that.
Subsequently the new owner uncovers various issues not declared at point of sale and claws back part of the sale value - my question now is, is the outgoing client still taxed on the original sale value, or can the clawback be taken into account as a reduction?
Logic wants to say it's now the lower value, but tax rules don't always follow logic....
Many thanks
-- Edited by BudgetB on Wednesday 18th of January 2017 05:47:02 PM
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
I thought it made a nice change from the 'I love spreadsheets' one!
Yes I realise it's the wrong time of year for this sort of thing, unfortunately it's exactly the time of year for clients to spring surprise complicated questions {eye roll}
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
I take that comment back....it's way friendlier than I remember!
Lol. You got the two nice ones! Don't be drawn in....when the nasties are sleeping
i did spot one or two posts that I was expecting would get ripped apart- not had time to look back on yet. I do find it a giggle when they do so, but only because it's not me on the end of one of their scathing rants!! If it was, I'd be blubbering in the floor
guess you can dig your client up now.....don't reckon the quicklime would've done much damage yet.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
