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goodwill amortilisation right off

  Practice bought 1977 sole trader for 30k. 2 new partners form full profit share practice 2007 buy in 399k. Parnership sold to ltd company for 1.8m in 2011 . Partners becomes directors. Can goodwill sale be amortilised and claimed against tax liability?

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Depends

When you say p/ship sold to ltd co. was this an incorporation, or was there a genuine sale to a company not previously owned by the partners? The reason I ask is that goodwill on incorporation is not an allowable w/o for tax, but if the partners were not connected to the ltd co. and there was a genuine payment for g/will then this would be purchased g/will and should be an allowable.

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I'm being picky

First we had amortization, which is bad enough. But what on earth is amortilisation?

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.

I quite like "amortilised".  it sounds quite important.

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Ha

blok wrote:

I quite like "amortilised".  it sounds quite important.

 

This made me laugh.

 

 

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On a serious note

My understanding agreed with Ubergeek, however I was recently corrected on this point on a recent AW post.  The posted stated that, due to the new regime which came in in 2002, you may get relief if the GW is generated after 2002, even if the parties were connected.

 

I'd appreciate some clarification here as well.

 

 

 

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And since I'm in the mood ...

... can you claim a deduction for a right off?

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Goodwill

He got GOODWILL right!

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lol

Peter, did you mean he got GOODWILL write?   ;)

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