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Where Taxpayers and Advisers Meet

Sale of Inherited Business Assets

keepgoing99
Posts:7
Joined:Wed Jan 26, 2022 6:12 pm
Sale of Inherited Business Assets

Postby keepgoing99 » Fri Jun 03, 2022 8:09 pm

Hi,

Father passed over a year ago and had hundreds of pieces of old equipment that he used as a sole trader, very niche. Received valuation of 15k from potential buyer, disclosed this amount on form (taxed at 40%, estate liable for IHT).

After a year the total value sold is over triple that, with no one item selling for more than £6,000. Lots of sales of £20-200 per item. This is as I sold on ebay, researched what they were, cleaned them a bit, checked they powered up and so on as opposed to selling to a bulk buyer for the 15k (initial plan)

I am not continuing the business, now that assets are sold nothing will be bought, all finished.

(1) When business assets are passed on via inheritance tax to someone who is merely disposing but not "trading", how are these assets treated for CGT Purposes. Wasting assets?

(2) If someone bulk bought the last 100 of the machines for £200 each for £20,000 can I assume this still doesn't qualify as a CGT gain as each gain is below £6,000 (the items are worth less, not more when sold in bulk and not enhanced by being part of a pair. A lot of the items are actually the same)

Any help appreciated!

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