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advice regarding business please.

(6 Posts)
OhBrother1 Sat 11-Jun-16 23:49:06

Have name changed as details quite specific.
I have 24% in a family business.
Asset of the business is being sold for 1 million ( only asset is the one property. Business has made no money & been inactive for 15 years)
Am being told by 1 shareholder ( also has 24%) that tax liability is 650k on the 1 million.
Can anyone explain this to me? It doesn't make sense.
Property was purchased many many years ago. I realise there is capital gains to pay.
I've been told corporation tax too?
To be honest I am not sure where to even begin to go for help,
Any suggestions much much appreciated.

Sunseed Mon 13-Jun-16 17:49:59

Do you know how much the property was originally purchased for and when?

fastdaytears Mon 13-Jun-16 17:51:59

That seems much too much for CGT. Has the company ever traded?

Do you have an accountant you can talk to?

Gotheftosleep Mon 13-Jun-16 17:57:47

Personal Tax person here. Do they perhaps mean that £650k of the gain is liable to CGT? As that would be comparable with a purchase price of £350k for example.

fastdaytears Mon 13-Jun-16 17:58:55

Oh yes that would make more sense

OhBrother1 Mon 13-Jun-16 22:38:40

Thank you for the advice.
Am going to speak with an accountant
There is something afoot.

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