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.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16303
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

What is the best way to structure sale of commercial

Customer Question

What is the best way to structure sale of commercial business and property with furniture and equipment for business use
JA: Have you talked to a tax professional about this?
Customer: not yet
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: bought property in 1981 for about 45k pounds; spent about 250k pounds on building new kitchen renovations, roof tiles, etc in order to make the property fit for restaurant business. Not sure what value now - but want to know if there are tax savings if structure sale in three parts as: Property; Business Reputation; Furniture/Cutlery/crockery/etc
Submitted: 15 days ago.
Category: Tax
Expert:  Sam replied 15 days ago.

Hi

The furniture and trimmings (crockery etc) and not allowable other then you replacing them for like for like - (so you have to pay out the initial purchase) and these are offset against  any rental income

Then for capital gains all the capital improvements (if entire rather than a part refurb - so for example a whole kitchen and bathroom or building on a conservatory etc) are allowable against the gain made on sale  sounds like you have merely maintained and repaired which are not allowable unless undertaken whilst in receipt of rental income then allowable against that

If pre rental then you suffer the cost -

But you cannot split the sale its one sale all in usually - and you would not benefit from doing this anyway

Thanks

Sam

Thanks

Sam

Customer: replied 15 days ago.
Your answer is not very clear - don't understand why you mention rentals, etc
Expert:  Sam replied 15 days ago.

Hi

As that's the only time those other costs are allowable

And only capital improvements are allowed as a capital deduction

Thanks

Sam