Inheritance used as business capital then taken out when business sold

Growingfamily

Hi everyone, only posted a couple of times but love lurking!

I have a query regarding a business that I started and sold within a year. It was a recruitment agency and I was in a partnership with a former work colleague.

Basically, my mum died and I was given a gift of £15,000 from my step-father (there was no will) which I used as capital for a business. It was verbally agreed with my business partner that when/if the business ever sold, I would take my money back from the business before any profit was divided 50:50 between me and her. Due to circumstances this happened before a year of trading.
What I need to know is do I declare this gift as a taxable profit from my business (as received it back when I sold the business to my business partner), for self assessment purposes?

Any help appreciated! Thank you!:D

Elaine_Wilson

When you introduced the money into the partnershi it would have been credited to a capital account in your name. Effectively you loaned the business that amount of money.

When you withdraw the money it is just repayment of the loan and not part of your profit share.

There could be complications if the business lost money so it was unable to repay the full amount but I assume this does not apply here.

Growingfamily

No, it doesn't apply here! Really pleased - the answer I needed! Thanks for your help.