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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My ex wife & I purchased a retail business 26 years

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My ex wife & I purchased a retail business 26 years ago.
Whilst it continues to trade at a profit that has declined in recent years and I anticipate selling at a capital loss when I retire.
We are unincorporated so trading profits are assessable to income tax.
Would the capital loss anticipated on the sale of the business be set off against trading profits?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. I'm afraid that you won't be able to relieve any capital loss you might incur from the sale of your business against income. If your business was a limited company and its shares became of negligible value, you might be able to lodge a successful claim for loss relief against income but that doesn't apply to unincorporated businesses I'm afraid. You will only be able to use the capital loss against capital gains. If you made a gain from the sale of the unincorporated business, it would be liable to Capital Gains Tax, not Income Tax. I hope this clarifies things for you but let me know if you have any further questions.
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