As far as I am aware.....

When you purchase a player, say for ?4m on a 4yr contract, you recognise an (intangible) asset on purchase of ?4m. This would be amortised (cost spread) over the 4yr life of the contract.

Say after 2 years you sell that player for ?8m.... There is ?2m left of the asset so you have a gain of ?6m.

That gain hits your profit and loss account when the sale is completed. You pay corporation tax on any profits made in that financial year (there will be many incomes/costs netting off against each other so even if profit made on one sale you could still likely be in a loss position overall for the year).

Posted By: JD3, Sep 2, 09:21:37