How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4783
Type Your Tax Question Here...
bigduckontax is online now

Roughly what rate of tax would be payable when selling a

This answer was rated:

Roughly what rate of tax would be payable when selling a business (Ltd Co) also the business has a commercial property which is tenanted though not by the business what tax would be payable on this. Would entrepreneurs relief apply to both ?

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Both these transactions would attract Capital Gains Tax (CGT) on the gains made on disposal. This would be levied at 10% or 20% or a combination of the two rates depending on your income including the gain in the tax year of disposal. However, if you are going out of the business altogether, then Entrepreneurs' Relief (ER) will limit your tax burden to a 10% flat rate. You have a lifetime allowance of ER of GBP 10m.

I do hope that you have found my reply of assistance.

Customer: replied 7 months ago.
would you still have to pay corporation tax at 20 then the 10 or just the 10% ?

The company pays Corporation Tax (CT) on any surplus made in each accounting year, current rate is 19%. The gains or losses you personally make on the sale of these businesses have nothing to do with CT.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.