.png)
.png)
The client is a mutual trading company that holds an annual conference on which a small profit is made. An events company wishes to buy the conference, and will pay a fixed capital sum followed by five annual payments
Our client is a mutual trading company. It usually breaks even over the year so generally tax is not a concern. It holds an annual conference on which a small profit is made.
The company has been approached to sell the annual conference to an events company. The company will be paid a fixed capital sum of £100 000 up front with five annual payments of £18 000.
In addition it will receive a percentage of future profits from the conference. Bearing in mind that as a mutual trading company any profits are due to be returned to the members are the proceeds of sale of the conferences taxable?
We look forward to replies.
Query 18 311 – Charles
Reply from Steve Kesby
I question on the limited facts provided whether the company is a mutual trading company; alternatively is it...
