New queries, issue 4193

Database disposal

I have recently taken on a new limited company client and have started work on preparing the accounts for the year ended 31 May 2008. 

At the end of that accounting year the limited company sold its database to an independent third party for £1 plus a percentage of that company’s monthly net profits in excess of a particular sum for the next four years.

In the first seven months following the sale no profit was made and no payment received. The next two months resulted in the receipt of £833 in total.

There then followed two months of nothing and one month of £110. The corporation tax return covering the date of the sale is due at HMRC by the end of March 2009.

I would very much appreciate readers’ thoughts as to what figure should be used when calculating the capital gain and thus...