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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15914
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Ibought a shop 25yrs ago for £60.000 and going to sell it for

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Ibought a shop 25yrs ago for £60.000 and going to sell it for £160.000 how much cg tax would I pay?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Did you operate the shop as a sole trader or through a limited company? Does £160,000 represent the value of the goodwill or the premises?
Customer: replied 1 year ago.
sole trader both value and goodwill
Expert:  TonyTax replied 1 year ago.
Thanks. Have you at any time since 6 April 2008 charged the business rent for the use of the business premises?
Customer: replied 1 year ago.
no rent my property
Customer: replied 1 year ago.
I have worked in it for 25 yrs
Expert:  TonyTax replied 1 year ago.
Thanks. Provided you meet the criteria for entrepreneurs' relief set out in HS275 here, you should pay CGT at 10% on your gain which will be £100,000. The first £11,100 of the gain will be exempt leaving you with a net taxable gain of £88,900 so the CGT should be £8,890.00. If you improved the premises, you may be able to increase the cost, though HMRC may ask to see proof of such expenditure. I hope this helps but let me know if you have any further questions.
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