Selling a business


B

bobtracey

Hi

I am selling my guesthouse and am trying to work out CGT. I understand
the basics of working it out. My question is when working out the
gain which figure do I use. Is it the raw sale figure or do I use the
sale figure less fixtures and fittings and less goodwill.

regards
 
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T

tim.....

bobtracey said:
Hi

I am selling my guesthouse and am trying to work out CGT. I understand
the basics of working it out. My question is when working out the
gain which figure do I use. Is it the raw sale figure or do I use the
sale figure less fixtures and fittings and less goodwill.
You have to pay the tax on the total gain that you make.

The simplistic way is to include the total amount that you
sell for and pay tax on that minus the buying price (plus
costs).

But I wouldn't be suprised if you are supposed to
apportion the total across all the things that you are
selling, working out the individual profit/loss on each
item based upon how long you have owned that item.

If you conside the F&F on their own, I doubt that you
will be making a profit on them. But if you have been
depreciating them in your P&L there might be a book
profit.

You certainly have to pay tax on any gain in the goodwill.

HTH

tim
..
 
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P

Peter Saxton

Hi

I am selling my guesthouse and am trying to work out CGT. I understand
the basics of working it out. My question is when working out the
gain which figure do I use. Is it the raw sale figure or do I use the
sale figure less fixtures and fittings and less goodwill.

regards
You don't understand the basics!

Take into account taper relief.
 

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