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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11745
Experience:  30 years as a practising solicitor.
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I have 50% share in a small business. I would like to sell

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I have 50% share in a small business. I would like to sell most of my share to my partner, to give her, say, a 95% share. She is a agreement to this, and we could readily agree on a realistic price for the transfer. The business is worth considerably less than what is showing on my capital account, and I am partly doing this to create a capital loss, which I can offset against a capital gain I made elsewhere this year. What would be involved in this procedure and is it likely that HMRC would have any objections?
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
It is usual on the retiral of a partner from a business to have the business revalued so as to ensure that the capital accounts are accurate as at the date of retirement.
You need to have the business revalued and ask the accountant to prepare cessation accounts as at the date of your retiral.
Happy to discuss further.
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