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Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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# I want to sell my 50% share of a business to my business partner

### Resolved Question:

I want to sell my 50% share of a business to my business partner for £100000. What and how much tax will I have to pay on this figure, ie capital gains tax/PAYE ?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Customer: replied 1 year ago.

quick question, could you briefly explain the difference between sale proceeds and gain, I thought the two would be the same as I had gained 100k through the sale ie the proceeds.

Customer: replied 1 year ago.

another question, if my personal taxable income was 15k would that be the 18% charge if I didn't qualify for the entrepreneurs 10% rate.

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your replies ... my apologies for the delay in responding to you. Difference between sale proceeds and gainExample - Buy a house for &pound;50k and you sell it for &pound;75k. You make a profit of &pound;25k.Sale proceeds are &pound;75k and the gain is &pound;25k.Your business (balance sheet) is reported on historic cost basis. Say the net assets/net worth of the business is &pound;150k and your partner wishes to pay you &pound;100k for 50% of it. In this scenario the gain would be (100-(150/2)) &pound;25k. If your taxable income is &pound;15k then (31,785-15,000) &pound;16,785 would be taxed at 18% and the rest at 28% The threshold for CGT at higher rate is &pound;31,785. I hope this is helpful and answers your question.
Category: Tax
Satisfied Customers: 4793
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.

Best wishes.

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