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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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My client is selling their practice. They have been in

Customer Question

My client is selling their practice. They have been in business for number of years.The selling price consist of Goodwill and Freehold property for £500000.00. Is the gain available for entrepreneurs relief because it was used 100% for business.
I mean is EPR relief also available on Goodwill.
Secondly does he have to charge vat. The business is vat registered.
The disposal will take place in the tax year 2016/17. Will the capital gain be paid on the normal due date which is 31 January 2017 as it is a partnership. I just read that capital gains will be due 30 days after completion.
Submitted: 11 months ago.
Category: Tax
Customer: replied 11 months ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 11 months ago.
my phone number is ***** 849235
Customer: replied 11 months ago.
I give up. Waiting for a responce
Expert:  bigduckontax replied 11 months ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Entrepreneurs' Relief will be available for the full 500K. Your client is selling his freehold. Such sales are zero rated so although he charges VAT the rate of tax is 0%. The client may opt to charge VAT, but this is usually only done where the buyer is a commercial enterprise registered for the tax also. Your surmise regarding the settlement of Capital Gains Tax (CGT) is correct. I do hope that you find my reply of assistance. I am sorry for the delay, I went to bed early last night and no other expert picked up the question in the interim.
Customer: replied 11 months ago.
Do I have to pay extra to discuss this topic via telephone conversation. I have already paid £52.
Expert:  bigduckontax replied 11 months ago.
Telephone calls are a premium service with Just Answer. I have to comply with their conditions of service too. By the by you have not rated me so I receive no remuneration for my advice until I receive a positive rating.
Customer: replied 11 months ago.
Dear *****
Thank you for the answer.
I will just give a positive rating soon after I have clarified. Just on the same topic,The CGT payable is not 31/1/17 as I originally said, which you agreed. In fact it will be 31/1/18 because the disposal will take place in 2016/17. The rules of CGT payable, will change from 6/4/19 when the CGT payable will be within 30 days of completion. Secondly the entrepreneurs' relief is currently available on the goodwill element as well. However it will not be available in relation to incorporation. Is this correct ?
Expert:  bigduckontax replied 11 months ago.
Yes, I accept you revised payment date your client will just slip in under the wire as regards ***** ***** is Taxation's advice on the treatment of goodwill viz a viz Entrepreneurs' Relief: 'For unincorporated businesses, TCGA 1992, s 169L, provides for entrepreneurs’ relief to be given on relevant business assets if they include goodwill.A new s 169LA has been inserted discounting goodwill as a relevant business asset where a person (P) disposes of goodwill to a close company (C) which is a related party.' So if your client's business in unincorporated then goodwill is allowed in Entrepreneurs' Relief. It appears that it is not allowable if the sale is to a close company which is a related party. This is pretty obvious as a firm could make a fortune using the relief going out of business whilst actually continuing under another guise. I do hope that I have covered everything.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3369
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 11 months ago.
Thank you for your support.
Expert:  bigduckontax replied 11 months ago.
And your kind bonus.
Customer: replied 11 months ago.
Hi Keith
Can you please phone me to discuss further on the same topic.
My phone number is ***** 849235
Expert:  bigduckontax replied 11 months ago.
Just Answer protocol does not permit me to go outside its parameters, sorry.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3369
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 11 months ago.
I don't have your phone number. Does it mean you will phone or you want me to phone. I am a bit confused.
Expert:  bigduckontax replied 11 months ago.
I have entered my contact information.
Expert:  bigduckontax replied 11 months ago.
Thank you for your support. I shall be in all afternoon.
Customer: replied 11 months ago.
Please can you make a refund. I have not asked a question yet and you have already taken the money.
Expert:  bigduckontax replied 11 months ago.
I have not taken the money, Just Answer does. I offered and you accepted. You can obtain a refund for the telephone consultation but you must approach Just Answer Administration.
Customer: replied 11 months ago.
How do I approach Just Answer Administration.
Expert:  bigduckontax replied 11 months ago.
I do not have your screen display which is different to mine. There is a link somewhere in yours.
Expert:  bigduckontax replied 11 months ago.
Post to clear my question list.

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