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Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 13914
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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If a business is transferred from one entity to another on

Customer Question

If a business is transferred from one entity to another on say
1st may but it is absolutely clear that the two parties agreed, or contracted, to do so prior to this date by virtue of all of the registrations with various bodies disclosing the transfer and other similar corroborative correspondence, is it reasonable to argue that the disposal took place at an earlier date, under s28 TCGA which specifically states " date of contract, not date of actual transfer"?
Submitted: 1 year ago.
Category: UK Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question - I am Sam and I am one of the Uk taxe xperts here on Just Answer.

Do you have contractual evidence drawn up at an earlier date detailing the contract to follow? If now, then I am afraid you have no cope to argue an earlier transfer date for capital gain (CT purposes)

Let me know if I can be of further assistance

Thanks

Sam

Customer: replied 1 year ago.
We have much documentation at an earlier date detailing clearly the intention to embark on the business transfer, and meeting minutes between both parties prior to transfer date agreeing to proceed on 1st May. So all of the documentation definitely corroborates the earlier meeting minutes. For example, the new business registered for Vat and notified HMRC of their intention to take over the business as a going concern, all dated prior to actually "going live"
Their was a written action plan between the two parties to ensure all formalities were covered off ready to effect the transfer on 1st May?
Expert:  Sam replied 1 year ago.

Hi

Thanks for for your response

Intention in itself isi not enough and furtehr more the fact you have documents that see 1st may as being the key tax point - actually details that date as the ONLY date HMRC will only consider.

I am afraid you have inadvertently created a tax point that cannot be changed to anything earlier.

Thanks

Sam