Sales of large websites (eg. £30k+)

[moneyfornothing]

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Are large website sales, worth from anywhere between say, 30k and 200k, simply classed as regular taxable income or can they be treated differently?

Im simply planning for future possibilities and the thought of selling a site for a lump sum that will cut the value nearly in half after tax didn't seem right (eg. especially if the sites yearly income would put it in the 20% bracket).

Thks.

[Mogga]

You thinking of capital gains?

Dunno. Ask an accountant.

[HoTMeLter]

You as an individual can claim some sort of capital gains allowance of 10k per yr and you are only taxed on the balance at a much lower rate than income tax.

example:

If you have had the site for a few yrs and can prove it cost you 5k to build, you could sell it for 15k tax free (using your 10k allowance)

However, if you have a partner (ie wife) - she can also claim up to 10k per yr on capital items so you could then sell the site for £25k tax free (10k each allowance plus the 5k it cost you to build it)

Now if were selling it for 50k then you would pay the tax on 35k as an individual but I don't think its a massive amount.

I asked my accountant last yr about selling a site for 70k and from memory the tax owing on it was something like 3k (as an individual)

Hope that helps a bit..

[moneyfornothing]

Thanks HotM, it certainly does help to hear of others experiences. Capital gains allowance is something I have little idea about but it's promising to see it may apply to these types of sale in certain situations.

You as an individual can claim some sort of capital gains allowance of 10k per yr and you are only taxed on the balance at a much lower rate than income tax.

I asked my accountant last yr about selling a site for 70k and from memory the tax owing on it was something like 3k (as an individual)

Hope that helps a bit..

Dunno. Ask an accountant.

Gee, thanks for that. We may as well close the forum down with that kind of stock answer.