How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask taxadvisor.uk Your Own Question

taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4802
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

, I have sold my company (shares) in 2012, 70000 GBP, after

Resolved Question:

Hi, I have sold my company (shares) in 2012, 70000 GBP, after 4 years owning it; is this taxable? considered as capital gain? many thanks, Daniela
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

Please clarify for me
You owned shares in a company and have sold them after holding them for 4 years.
-Did you sell them for £70,000?
-How much profit did you make on this sale?
- What did you pay for these shares?

Gains arising from sale of shares are normally chargeable to capital gains tax.

Many thanks
Customer: replied 1 year ago.

Thanks,

Answers;

- it was my own company, registered in 2007, 100 % shares owned,

- It was 100 GBP hte initial value

if needed to be taxed where does it need to be included (in which section) in the self assesment tax return?

- the payment was received in 3 installments; if the tax return is done on a cash basis, is it ok to disclose it in 3 years?

Thanks,

daniela

Expert:  taxadvisor.uk replied 1 year ago.
Daniele, thank you for your reply and for additional information.

As you sold all shares held in your company, you may be eligible for Entrepreneurs' Relief which means your gain is taxed at 10% instead of 18%, 28% or a combination of both.

There are certain qualifying conditions to claim this relief and they are covered on Page 3 of this helpsheet.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323651/hs275.pdf


You report the gain in supplementary pages "SA108 - Capital gain summary" of the main tax return - Box 4 of SA108. More information on this can be found here

https://www.gov.uk/government/publications/self-assessment-capital-gains-summary-sa108


You would show the whole amount in the tax year the sale took place unless the sale was made in instalments.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.

Thank you for this.

So, if the contract has been signed on 2nd April 2012, is it too late now, to claim entr. relief? is it anything it can be done now?

daniela

Expert:  taxadvisor.uk replied 1 year ago.
Daniela, thank you for your reply.

page 1 refers to claims and time scales.

The sale took place in tax year 2011-12 and a claim should have been made 31 Jan 2014.

I would advise you to write to tax office and notify of your claim by filling in Sc A of the form at the end of helpsheet hs275.

Let's hope it is acceptable.

I hope this is helpful and answers your question.
Expert:  taxadvisor.uk replied 1 year ago.

You may like to read your contract for sale of shares and see if there is anything that suggests conditional/sale in instalments to address the timing of claim issue.

You say the contract was signed on 2 Apr 2012. Was it the completion/handover date

too?

I hope this is helpful.

Customer: replied 1 year ago.

by contract, the payment was scheduled in 3 installments, the last payment was received in April 14.

Expert:  taxadvisor.uk replied 1 year ago.

Daniela, thank you for your reply.

If the contract stipulates the sale is in three instalments then you may be able to get ER for 2 out of those three.

You would be able to amend your tax return for 2103-14 before 31 Jan 2016.
As far as 2012-13 tax return is concerned you could amend it online up to 31 Jan 2015. As you have missed that date, I suggest you write to HMRC and advise them of amended figures for each of the years 2011-12, 2012-13 and 2013-14.

You hope they accept all instalments as qualifying for ER.

Was the first instalment made before 5 Apr 2012?

I hope this is helpful.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4802
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.

Best wishes.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions