Part 13

Tax avoidance
Chapter 4

Sales of occupation income

Exemption for sales of going concerns

Exemption for sales of going concerns
784
1
This section applies if a capital amount is obtained from the disposal—
a
of assets (including any goodwill) of a profession or vocation,
b
of a share in a partnership which is carrying on a profession or vocation, or
c
of shares in a company.
2
An individual is not liable to income tax under this Chapter in respect of the capital amount so far as the going concern condition is met (see subsections (4) and (5)).
3
Subsection (2) is subject to section 785 (restriction on exemption: sales of future earnings).
4
In the case of a disposal within subsection (1)(a) or (b), the going concern condition is that the value of what is disposed of at the time of disposal is attributable to the value of the profession or vocation as a going concern.
5
In the case of a disposal within subsection (1)(c), the going concern condition is that the value of what is disposed of at the time of disposal is attributable to the value of the company's business as a going concern.
6
In subsection (5) the reference to the company's business includes a reference to the business of any other company in which it holds shares directly or indirectly.