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for a sole trader the answer is no, the new business doen't need to buy it, because as the taxman sees it as the person is the same as his selfemployed business.
lehman's term - You can't make a profit with "Joe Bloggs" selling to "Joe Bloggs"
There be no tax on Joe Bloggs as, he haven't sold the name to anyone yet, the business and him is a single entity.
The domain name will be a asset in the balance sheet, so it will be Debit Asset Credit Capital Introduced. At the domain cost initially created by the owner as registering and renewing the domain, and of course the nominet fees. Unless the domain was used to make a profit for something else before then only the nominet fee.
Only if you start a company then there's a whole new arguable grey area.
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