Help with Tax

[Jayne]

Hi,

Someone has told me that when I sell my shop, if I start a new business within 6 months of selling, I will not pay any TAX on the profits of the sale, as long as I invest the profit into my new one. My accountant said it depends on lots of different things, to whether or not I pay Tax. It makes me angry that I have to pay TAX on the profits, after the amount they have taken off us over the years. Business people should not have to pay Tax at all (EVER), the government should be paying us for keeping unemployment figures low!

Thank You

Jayne

 

[Alpha]

Sorry Jane but I'm confused

Is this a request for help re tax or just a statement of the fact you don't like paying it?

 

[Jayne]

It was a question for help/advice....The moaning was just extra

Thanks

Jayne

 

[Alpha]

But Jayne

You have an accountant, you have asked him and he has advised you.

You stated in another thread that he is a good accountant so just listen to his advice not hearsay.

I listened to someone yesterday who was telling me it was great only having to charge 12% vat to customers. As I wasn't aware of a 12% vat rate I inquired further.

Turns out he had spoken to someone about the vat fixed rate scheme and so because his(The one who had told him) particular rate is 12% he assumed that a) It would apply to everyone and b) that was all he charged the customers.

Oh Dear :roll:

 

[Jayne]

I do have a good accountant. I did ask him and thought I would have to pay tax. It was another business friend who came in our shop who told me, It was rubbish, If I got another business within 6 months I wouldn't pay any Tax. So I got a bit confused. My accountant is a very nice man and didn't want to say anything to him, incase he felt I didn't trust his advice, so I though I'd ask on here, so I didn't offend him.

Thanks

Jayne

 

[Alpha]

Unfortunately you do need specifice advise which your accountant or another would be in a much better position to give you depending on your individual circumstances.

Both could be right

In general terms and this is not advice!

under s152 TCGA 1992 it is possible to claim business roll over relief. Effectively meaning that no capital gains tax is payable at that time. Although there are subsequent consequences to this action.

This situation applies where certain types of assets are disposed of and the proceeds reinvested in replacement assets to be used in the same or a similar business or in another business carried on by the seller.

the main types of asset to which these rules apply are buildings and land, fixed plant and machinery and goodwill.

the replacement must be acquired within three years following the disposal of the old asset or within one year preceding the disposal.

 

[Jayne]

Thank you,

It's all very confusing, so I think I will just listen to my accountant in future. I worry over anything and everything. I understand it a bit better now i've read your post. Thanks a lot.

Jayne

 

[SmallBizSoftware]

jayne you are just far too nice. Remember that you pay your accountant so always ask him any question you like and tell him if you think he as got it wrong, he is human! I am in Service managememnt and spend most of my time challening professionals, just tell him you are confused as you have been different by another advisor and then he will check his facts ... just to prove the other guy wrong .... and if he is a professional he will admit when he gets it wrong.

 

[Jayne]

Thanks for that,

My husband thinks I am too soft too. He's always telling me to toughen up, but I think lifes too short to be mean and grumpy to people. Something my Gran always told me (Be nice to people on the way up, because you may meet them on the way down) I get really upset if we have to sack someone, I'm not good at that side of business. But I'm better than I used to be!

See ya!

Jayne