Sold Business, doing last tax return

UK Discussion in 'Technical Queries' started by Denzil, Feb 12, 2018.

  1. Denzil


    Feb 12, 2018
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    My partner sold her business at the end of last year. It was a takeaway business.

    The original purchase price of the business was £55,000, 10 years ago and she sold it for £30,000 in December 2017.

    I am writing up her last set of books and I am not sure where to put the £30,000 sale proceeds.

    Is this treated as turnover (but that would put her over the VAT threshold) or is it only used for the Capital Gains Computation?
    Denzil, Feb 12, 2018
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  2. Denzil

    Becky Administrator

    Aug 26, 2011
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    Is she self employed? My understanding would be that the gain relates to the sale of business assets and goodwill, therefore it would not be turnover. Re VAT my knowledge is limited... as far as I am aware if the sale qualifies as a transfer of a going concern then it is outside the scope of VAT. You should take a look into this so that you can be sure.
    Becky, Feb 13, 2018
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