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Hi there I wonder whether you can help me here.
Two individuals bought a company for £230 paying £70 to acquire shares (stamp duty paid) and balance £150 by settling a debt owed by the company. After couple of years they sold the business (not the company) for £625 (incl net assets £25). Does the company liable for CGT and how much? were there any reliefs available?
Now the company is looking to buy a freehold pub (just buying the building not as a going concern) for £750. Would there be any relief available with this purchase?
Also do you think the company could have accounted Goodwill at any time? Before the business was sold for £625, there was an offer for £700 but it didn't materialised
Appreciate your help
Are you of the opinion that the initial cost £230 + stamp duty can be offset to the sale £625 to calculate the gain? Please note £230 was made up of £30 paid for the shares of the company by new owners to acquire the company & £150 to settle company's debt.
Primary question here is how much would be the gain? and the gain qualifies for any relief please
I assume the VAT on pub purchase depends on whether the seller has opted for VAT?
I have asked for clarification which I did not get an answer yet