It would depend on whether the business was registered as a separate entity or in your own name? How is the business run?
Christinesays: 10 January 2013 at 14:44
Could you respond covering both scenarios?
Scenario 1: If the business were registered in my own name (as a sole proprietor)?
Scenario 2: If the business were registered as a separate entity (such as a CC or PTY Ltd)?
TaxTimsays: 10 January 2013 at 18:47
If the business were "registered" in your own name, then the tax would be paid on the actual assets sold which would result in Capital Gains Tax. Some assets that you use may not be subject to CGT, but a list sold would need to be drawn up to determine what the overall effect is.
If you were to sell the business as a (Pty) Ltd then the shares or members' interest would be sold and the value of that less the original cost which is often zero would be subject to CGT.
I hope that helps?
Christinesays: 11 January 2013 at 20:37
Yes, thank you Tim.
TaxTimsays: 23 February 2013 at 17:16
Only a pleasure!
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