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Can tax relief be obtained for the cost of a sub-post office when it is closed down?
My client purchased a sub-post office in 1998 for about £70 000 which he operated until it was taken back by the Post Office.
He completed his own self-assessment tax returns putting the income and allowable expenses in the employment section of his return form. On closure last year he received £65 000 from the Post Office.
The accompanying correspondence stated that this was a “termination payment of which we believe that the first £30 000 is tax free and the balance is subject to income tax”.
Because the takeover was in December 2013 when the £35 000 is added to his salary he is pushed into higher-rate tax bands for income tax. M
y question is how does my client get tax relief for the capital outlay made in 1998 because his disposal proceeds are described by the Post Office as a termination payment for...
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