Alex Watts :
Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.
Alex Watts :
How much did you buy the business for please?
Customer : £50,000
Alex Watts : So you bought for £50,0000 and selling for £50,000?
Alex Watts : In that case you don't incur tax on the sale.
Alex Watts : If you are selling your business as an individual then there is no VAT to oay
Alex Watts : pay
Alex Watts : Can I clarify anything for you about this today please?
Customer : I am selling my existing company as a individual
Customer : Is there any tax
Alex Watts : No, because you are not making a profit. You said you brought it for £50,000 and sold for £50,000
Alex Watts : Does that help?
Customer : No I didn't buy it I'm just selling it
Alex Watts : Sorry, I asked you how much you bought it for and you said £50,000?
Customer : No I didn't buy it. It's my business I want to sell it
Alex Watts : How much capital did you have to start it up?
Customer : 24,000 that's was 7 years a go
Alex Watts : Ok. Then your gain is £26,000
Alex Watts : You can have the first £11,000 tax free. So that means you pay tax on the £15,000
Alex Watts : If you are currently a 20% tax payer then you pay 20%, if higher then 40% and too rate 50%
Alex Watts : Can I clarify anything else?
Customer : Wow are you sure?
Customer : Sale of a goodwill of a business is that the same as selling the business
Alex Watts : Yes, you tAke the price you paid, minus the sale.
Alex Watts : Then less capital allowance, this is your taxable amount.
Alex Watts : Does that clarify?
Customer : Ok
Customer : What is goodwill sale, what is business sale
Alex Watts : Goodwill is nothing physical.
Alex Watts : The business sale may or may not include foodwioll
Alex Watts : goodwillgoodwill goodwill.
Alex Watts : goodwill