Can anyone help please with info about sale of a business?
My son and I jointly own a business (manufacturing) that is now about 8 years old and has machinery valued in the books at about 8K – probably worth about 15k.
My son is getting fed up and has approached a selling agent who says that he can sell the business and only pay 10% tax on the entire proceeds i.e. the goodwill and machinery – it seems too good to be true!
Sale of business
2 posts • Page 1 of 1
by King_Maker on Wed Sep 14, 2005 1:32 am
I suspect the agent has CGT in mind.
If asset(s) qualify for Business Taper Relief (which could be after 2 years), the gain is reduced by 75%. Therefore, the maximum rate of CGT is effectively 10% (25% x 40%).
I suggest you check the position with your accountant.
If asset(s) qualify for Business Taper Relief (which could be after 2 years), the gain is reduced by 75%. Therefore, the maximum rate of CGT is effectively 10% (25% x 40%).
I suggest you check the position with your accountant.
- King_Maker
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2 posts • Page 1 of 1
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