I seem to recall reading about a case where it was agreed the purchaser of a business could ignore the contractual allocation of consideration between purchased assets and replace it with market allocation eg the contract said £100k for the buildings, £50k for goodwill and £10k for P&M but the purchaser argued (and won) that P&M made up a larger proportion of the cost – and therefore could claim more CAs. Am I imagining it or was there such a case? I’m not thinking of cases where the purchaser could claim the building included integral fixtures etc. Any help would be appreciated.
2nd Jun 2011
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Re-apportioning the cost of purchasing a business
Re-apportioning the cost of purchasing a business