Alex Watts : Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Do you have an accountant please?
Hi Alex thanks for your response. We don't have an accountant per se rather someone that does the books and sends info out on our behalf. At the moment we have a series of contracts worth about 400k over the next year or so, plus we have 5 staff including ourselves, and assets such as computers, software and furniture. We also have a healthy amount of other work lined up so there's a lot of stability there.
Alex Watts : Ok. Generally a guide is annual turnover or x3 net profit.
Alex Watts : but you can instruct an account an to give you a proper valuation.
Alex Watts : You don't need to sell anything below this amount. If you refuse then you always remain owner of your share.
Alex Watts : But instruct an accountant who specialises in business valuation.
Alex Watts : Can I clarify anything for you about this today please?
Thank you. Would I be liable to any form of taxation if I sold the share of the business? Also on the business valuation do the assets
count towards the value; i.e. staff or is that included in the annual turnover figure? Finally if we had a low annual turnover the year before but are destined for a high one end of next year is there a way of factoring this? Many thanks
Im abroad hence the odd time postings to the right if you're wondering.
Alex Watts : Yes you would be liable for any capital gains.
Alex Watts : Your tax liability would depend on the gain and what rate of tax payer you are.
Alex Watts : Does that claiify?
For the tax liability does that count if I don't live in the UK? Also do the assets such as staff count towards the valuation or is this all included in the turn over valuation?
Alex Watts : Sadly I am not a tax expert I am a lawyer. You may need to check with hmrc about rules.
Alex Watts : Your accountant may also add assets to the valuation but staff are unlikely to count.
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