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 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 .
You don't understand the basics!
Take into account taper relief.
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