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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4953
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Im just completing my self assessment and have one main

Customer Question

Im just completing my self assessment and have one main question.
Im a sole trader running a gardening business. I also ran a Ltd company until I sold it earlier this yr.
I have put down all gardening related expenses and added the money from the sale of the LTD.
The bit that's confusing me is this: I have paid quite a lot of money towards a new website which is separate from both of the above. The site is new and will be a commerce site rather than a static/brochure style site. Can I claim expenses for this? Or should it be listed as an asset? I am a sole trader and this website is a brand new venture and will not be a ltd for some time.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
Firstly your treatment of the company appears incorrect. Any gain made on the sale is subject to Capital Gains Tax, You have an Annual Exempt Amount of 40K to offset the gain, but anything over is taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the year of sale. If this company was a business you ran then you may be entitled to Entrepreneurs' Relief which limits the rate of tax to 10%.
I suggest that the web site, as it is not related to your current business activities, cannot, at this stage, be allowed against your current profits, but must be held in abeyance until the new venture commences.
I do hope I have shed some light on your real position for you.