That's really very helpful, thank you. Just to make sure that we have things right, could you clarify a few more things for us please. Regarding Goodwill. Could you confirm that we're able to include the following in acquisition costs, bearing in mind that the business was built from scratch and involved converting a bare industrial unit, previously used for working on vehicles: Preparation and replacement of concrete floor with vinyl flooring suitable for fitness and dance. Installation and painting of insulated ceiling where no ceiling previously existed. Installation of steel framework in ceiling to support fitness equipment. Installation of safety lighting and signage Installation of Burglar alarm. Logo design and artwork Exterior signage Regarding Fixtures, Fittings & Equipment. Where purchases of the same type were made over a few years, e.g. 10 Safety mats bought 2017, 5 in 2018, 5 in 2022, do we need to complete 3 separate CGN12 forms or can they be clumped together using the earliest date as the date of purchase? As many items were included in the sale I am likely to have over 50 computation forms. Would this seem usual or is there another document we should be using? Look forward to hearing your advice. Kind regards
Hi. My daughter has recently sold her fitness business and I’m helping to complete the capital gain on her self assessment. I’ve always done her bookkeeping but I’m unsure about a few things and I’d appreciate it if anyone is able to clarify a few things:
The sale was broken down into 3 , Goodwill , Fixtures and Fittings, Equipment. Individual assets were not itemised.
Regarding Goodwill - the business was built up from scratch. Other than the costs of acquiring and disposing of the business would the purchase price be zero?
Regarding F&F and Equipment, there are many individual items bought over several years. Do we just make a reasonable estimate and apportion that percentage to the sale price. E.g. if total Equipment sale price was £10,000 and Safety Mats were estimated to be worth about 20% of the assets, a sale value of £2000 should be entered?
Where purchases of the same type were made over a few years, e.g. 10 Safety mats bought 2017, 5 in 2018, 5 in 2022, do we need to complete 3 separate forms or can they be clumped together using the earliest date as the date of purchase?
If an asset had previously been accounted for as a revenue expense, am I correct in that you can’t deduct that from the gain? Would you make a comment that this was the case and enter the purchase price as zero?
If an asset had previously been accounted for under Annual Investment Allowance, am I correct in thinking that you have to make a balancing charge to increase profits on the business profit and loss.
If you can’t provide a receipt or proof of purchase do you enter a purchase price of zero and comment to that effect.
I’d appreciate any advice at all.