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 bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3001
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I sold my business premises (sole trader) for £180,000

Customer Question

Hi,
I sold my business premises (sole trader) for £180,000 in Feb 2014, which I bought in 1996 for £68,500. Improvements to the property, for which receipts exist, amount to £20,000. As part of my separation agreement, I disponed the marital home to my wife and, in order to qualify for a new mortgage, paid £38,000 in alimont costs, based on the projected term of my children's higher education. I purchased a new home with studio outbuilding in order to carry on my business, using the remainder of my gains from the sale of my previous business premises to fund the down-payment and secured a mortgage of 80,000 for the remainder of the purchase cost. My business has registered small losses in some recent years, but a small profit of around £5000 for the year 14-15 for which the tax-return is now due. My divorce is due to come through in April. Any help on what my capital gains liability will be and whether I qualify for allowances would be gratefully received. Thanks Russell
Submitted: 10 months ago.
Category: Tax
Customer: replied 10 months ago.
My new home is in joint names with my partner, whom I will marry later this year. Both my previous premises and the separate outbuilding at my new home were/are in continuous business use and were/are insured separately to my dwelling.
Expert:  bigduckontax replied 10 months ago.
Hello Russell, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
You will be liable for Capital Gains Tax (CGT) on the gain made on the sale of your original business premises. The gain is 180K - 68.5K - 20K = 91.5K. It would appear from the tenor of you question that some of the gain was spent on new business premises, but is silent as to the quantum. That sum would be entitled to Rollover Relief which merely postpones the gain to some future indeterminate date when you cease trading.
CGT is levied at 18% or 28% or a combination of the two rates depending on your income including the gain the tax year of disposal.
Your marital position is irrelevant in this matter.
I do hope that you find my reply useful.

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:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    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:

    1772
    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:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    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:

    268
    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