I have a client company that has spent £50,000 on it’s website and is looking to sell this website to a SIPP for £200,000 (valuation may be an issue!)
The question I have is whether the ‘gain’ in the company is assessed as a trading receipt (under the intangibles regime) or as a capital gain (under the tangible rules).
I know that for UK GAAP purposes this is treated as a tangible asset under FRS 15.
I have been advised that the client has a choice in how this is treated for tax purposes – is this correct?
It is fairly key as the company has brought forward losses which could be utilised against an income profit – could HMRC argue this is a different trade?
Sale of website
2 posts • Page 1 of 1
Sale of website
by PJC1308 on Wed Nov 02, 2011 12:05 pm
- PJC1308
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Re: Sale of website
by section 44 on Tue Dec 06, 2011 5:31 pm
what is actually being sold, a website address? design rights/trade marks etc?
- section 44
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2 posts • Page 1 of 1
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