The closing balance received was £22000 net after corporation tax had been paid. This sum splits 55:45 with my wife who was a joint shareholder.
My share of this will be subject to tax at the higher rate if declared as income. Can I declare this as a capital gain, which would be within annual tax free limit?
As I have other capital gains I would like to crystalise this tax year, is it possible as an alternative to declare this sum under the ESC16 replacement legislation which I understand to be set at a tax rate of 10 % for gains up to £25000. If so, how do I declare this?
My wife can declare as income as this would not take her income above the higher rate limit.