UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
As this now your only source of income, then this is deemed liable to income tax and NOT capital gains, and you will need to register as self employed with HMRC, so you can be issued with a self assessment tax return after each 5th April
Up until the time that it became your only income, then you could have declared this under the capital gains regime, so you will need to split off, the time to and from this becoming your sole income for the correct tax regime.
(So its capital gains to the time it became your sole income and then income tax from the time it became your sole income - rather than both taxes for the whole period!)
I am already self-employed and I pay PAYE submitting self-assessment tax return every year. Does this change anything? Is there a way for me to run profits from this year through my company? The only thing that is effectively changing is the type of business: it was a consultancy, but now I'm looking into making it a trading/investment firm.
Please clarify, as you a sole trader/self employment or a director of a limited company?
Director of a limited company
Thanks for the response and apologies for my delay
Then you will have to close this company down when trading has ceased, and open up a new limited company with this new trade.
But yes, you can trade through a limited company