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On 30 June 2018 Micheal sold a business that he had run as a sole trader since 1 jan 2014. He realized following gains and losses on chargeable assets of business
Goodwill 60000
Freehold property 64000
Storage unit (13000)
GW has been built up since 1 jan 2014. Free hold property had been acquired 6 months prior to disposal date and storage unit had been acquired on 1 jan 2015
What is net chargeable gain on disposal of sole trader business on 30 june 2018 that qualifies for entrepreneur relief?Sir here why freehold property qualifies for ER because as we know that one of the clause of ER is that sale of running business or part of running business but there must be last 1 year ownership in business. And here freehold property just has last 6 months ownership in business rather than 1 year ownership
This is the same question as asked a few days ago by a different student – the question is headed “Entrepreneurs Relief” – but it is the business that needs to have been owned for at least 12 months.
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