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Where Taxpayers and Advisers Meet

Capital Gains Tax / Selling Website

applow
Posts:1
Joined:Wed Sep 29, 2021 9:49 am
Capital Gains Tax / Selling Website

Postby applow » Wed Sep 29, 2021 9:52 am

Hi there.

Looking for some advice on both capital gains and personal tax I may owe/soon owe. I've been abroad for 18 months and I'll soon be selling my website/SASS app.

So, in May 2018 I left for Thailand. I was away until Dec 2019 and then returned for around 55 days in total. In March 2020 I came back to Thailand and I haven't left since. In August 2020, I created a website that's been generating income and I hope to soon sell this. I have a few questions that I need some help with, please. Oh and I don't have any company set up or anything, it's just me and I'm just selling these as assets, as far as I know.

1 - Do I owe any personal tax for Apr 2020 - Apr 2021? I wasn't ever in the UK in this time but the money has gone to a UK bank account.

2 - Do I owe capital gains tax for selling a website as a sole trader/individual? If I do owe capital gains tax, are you aware of any relief schemes that can help me?

3 - In general, does receiving these funds, whether it's from profits or sale, in a UK bank account have any affect?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Capital Gains Tax / Selling Website

Postby AGoodman » Thu Sep 30, 2021 12:18 pm

You can't be UK tax resident in a year where you were never present in the UK. So:

1. Only any UK source income
2. Usually not if you are not UK resident when you sell. However, if you return to the UK within 5 years of departure, you could be subject to capital gains tax on your return (this is known as temporary non-residence). You might benefit from business asset taper relief (formerly known as entrepreneurs relief) but one of the conditions is that you have owned the business for at least 2 years and you appear to be 10-11 months short of that.
3. No


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