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Where Taxpayers and Advisers Meet

Tax relief on purchasing a business

Dcook0805
Posts:1
Joined:Mon Feb 01, 2021 8:09 pm
Tax relief on purchasing a business

Postby Dcook0805 » Mon Feb 01, 2021 8:17 pm

Hi all,

I am looking for a bit of advice I am purchasing a limited company (I am buying the shares rather than the assets) for £80,000 would I get any tax relief when taking money out of the business to pay myself back the money I used to purchase the business or would it just be classed as a dividend and as such I would be taxed as normal on it

Many thanks

David

bd6759
Posts:3588
Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax relief on purchasing a business

Postby bd6759 » Mon Feb 01, 2021 10:02 pm

Taxed as normal

pawncob
Posts:4753
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax relief on purchasing a business

Postby pawncob » Wed Feb 03, 2021 9:15 pm

The funds you used to buy the business are your money. When (if) you sell the business, that's your base cost for CGT. As bd says, if you take money out of the business, it's taxed as income.
With a pinch of salt take what I say, but don't exceed your RDA


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