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bigduckontax, Accountant
Category: Tax
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I am self employed. I ceased trading on 31st March 2015 and

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I am self employed. I ceased trading on 31st March 2015 and sold my business on the basis of one half of its value up front and a second half to be paid wef 31st March 2017. What is my tax position, please?
I am remaining self employed but carrying out a different operation.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. There are two main taxes involved here, Income Tax (IT) and Capital Gains Tax (CGT). If you sell or dispose of your business assets eg buildings, equipment, fixtures and fittings, or even the business' reputation ('goodwill') - you may also need to pay CGT on the 'profit' (or gain) that you make. For those assets that you continue to use you can utilise Roll Over Relief to postpone the gain. However, you will probably be able to claim Entrepreneurs' Relief on this gain which limits CGT to a flat rate 10% instead of the normal 18% or 28%. As you are continuing in self employment then for IT purposes you merely continue as before maintaining books of account to record income and expenditure. HMRC may take the view that you should for IT purposes close down and re-start, but at this stage I would suggest that continuing in business should be an acceptable approach. I do hope I have helped she some light on your position. You may need the assistance of a trusted, local professional in this matter.