Purrdy
Blogger
Share this content
0
1
3609

How does a soletrader deal with goodwill?

How does a soletrader deal with goodwill?

Hi

I am completing accounts/SA for a sole trader who has bought a business that has goodwill included in their balance sheet valuation.  I wanted to check what the correct treatment was for amortising goodwill for a sole trader?  Whether there were any specific write down rules?

I also understand that tax relief can not be claimed on the goodwill amortisation?  Could somebody clarify the situation for me? 

Thank you for your help

Replies

Please login or register to join the discussion.

16th Jan 2012 11:06

Goodwill is only relevant to a sole trader in the sense that it has a base cost, should they ever sell it.

They get no tax relief on amortising it, so why bother?

 

Thanks (1)