Tax implications

[tinx]

As an investment Bobby cost 100 grand has been sold for x million.

Making a profit of x million -100,000.

Does that mean we have to pay capital gains tax on the difference?

That could put a big dent in the amount we make profit wise as well

 

[Mr Popkins]

the way i read beckhams transfer was because ,Man Utd paid nothing for him then the tax would be more than if they paid for him . dont ask me how this works!

 

[jimmy hill's chin]

Making a profit of x million -100,000.

- 30% off x million to rovers

 

[perth seagull]

Are players classed by Inland Revenue as capital?

 

[El Presidente]

Bobby's registration is that of a trading asset. For a company, both income and capital are combined to arrive at an overall Profit Chargeable to Corporation tax figure (PCTCT). This is then multiplied by the relevant rate of corporation tax, which is 10% on profits under £10k, 19% on profits between 50-300K, and 30% on profits over £1.5million.

The trading losses brought forward for the last three years can be offset against the gain on Bobby's sale, so there should be no tax liability IMHO

 

[afters]

absolutely correct el presidente