no we did not pay a premium, but did receive one and yes the assignee took over the rent payments
The business ran for 3.5 years and prior to signing the lease we had the property on a licence to occupy basis
Hi again.If you ran the business as a partnership, you and your wife were each effectively self-employed. The lease would have been in your and your wife's names personally. Assuming that you showed the business ceased in your 2013/14 partnership and personal tax returns and you have submitted those to HMRC, you may as well leave those as they are.I would disclose the assignment premium in your 2015 tax returns but not as partnership income as that ceased in 2013/14. It should be disclosed as personal income/gain. The income element should be shown in the SA105 rental pages (page UKP2). See PIM1205, BIM46255 and BIM46265. Any gain element should be disclosed in the CG108 pages.You can claim the costs of assignment that you mention but not the rent you paid. Had the business still been in operation, you would have claimed it in your business accounts.I hope this helps but let me know if you have any further questions.
thanks this is helpful. As regards ***** ***** which ceased trading we submitted accounts for it 13/14 and also a final Vat return. Do I have to do anything else to formally inform HMRC that we have not traded in this tax year 14/15 and that the partnership is finished?
thanks for this. one small question, I am not sure that the cessation date was entered on the returns as mentioned. How can I check this and if not how do I sort it out with HMRC....phone their helpline?
Many thanks, ***** ***** very helpful