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Where Taxpayers and Advisers Meet

Sold business tax implications

FrankBlack69
Posts: 1
Joined: Sat Nov 10, 2018 10:05 pm

Sold business tax implications

Postby FrankBlack69 » Sat Nov 10, 2018 10:19 pm

Hello,

I recently sold the assets of my sole trader business (custom software for Windows) which is no longer trading. I made 35k from the sale and 10k in profits for the year and wonder where my tax liabilities lie.

My capital gains liability is likely the whole 35k due to zero start-up costs.

My question is : Do I pay tax as normal on the profits AND the tax from capital gains or tax on the entire 45k then the capital gains on the 35k (for double taxation) our something else.

Any help would be greatly appreciated.

Thanks

SteLacca
Posts: 426
Joined: Fri Aug 07, 2015 2:17 pm

Re: Sold business tax implications

Postby SteLacca » Mon Nov 12, 2018 4:34 pm

The two are separate. The £10k subject to IT, and the £35K subject to CGT. However, don't forget for CGT that you have an annual exemption, and may qualify for entrepreneurs relief.


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