Buying existing Burger van Business

by **burgerman** on Mon Oct 24, 2011 12:14 pm

Hi
Can you tell me if i buy an existing burger van business (trailer with site) will i be able to claim anything tax wise in the first year of trading on buying the business?
The cost will be £6000 but i will not be vat registered
Thanks

by **RMC** on Wed Oct 26, 2011 12:00 pm

Hello,
Presumably you want to know whether the £6,000 you paid for the burger business is deductible for tax purposes?
Your accountant will need to see the sale document. If what you purchased is a few years’ lease of the site and trailer, this should be deductible, over the period, as rent. Or, maybe the ‘site’ component of the purchase is rent.
If the trailer is not affixed to the site and can be moved and traded from at other locations, it should be eligible for the Annual Investment Allowance.
If a part of the purchase price is re business goodwill, this is be subject to the Capital Gains regime, unless you trade through a limited company.

by **burgerman** on Wed Oct 26, 2011 7:41 pm

Hi
Thanks for you reply. I would be buying the van and site as a whole sum of £6000. I would be trading from the same point and buying the existing business.

Would i then deduct the cost of the business in the first tax year claim before i pay tax for real?

Thanks again

by **Incredulum** on Thu Oct 27, 2011 12:53 pm

No you would not - see post above.

What exactly are you buying? A freehold site with a van permanently parked on it? A mobile van, and the right to sell burgers from that particular site for five years (say)? A van, and then you pay annual rent for the site?

by **burgerman** on Thu Oct 27, 2011 4:55 pm

Hi Thanks for that

Forget the pitch this is a lay by with no rent. The van will be stored at rent close by @ £5.00 per week. Its purely to buy burger business only

Thanks