I have recently purchased a list of customers and suppliers from my parents following their retirement so that I can takeover and hopefully build.
I have agreed to pay them £5,000 for the information and the use of their expertise. This roughly equates to 6 months profit.
Am I able to offset this against my trading profits and are my parents able to treat the £5,000 as a capital gain to offset against their annual exemption?
Or is there perhaps a different way of structuring this to ensure it is tax efficient for both myself and my parents. (My parents have other taxable income and are basic rate tax payers)
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