Hive up of trade & UK tax

Great - many thanks for the speedy advice!

So just to clarify, on the purchase of the shares for £50K by A, this should not have been shown as an investment (ie dr inv 50K and cr cash)?

the actual transfer of the trade may take place say 6 or 12 months after the purchase of the shares.

would it be a case of initially dr the £50K to investments and then when the trade is transferred is the £50K credited from investments and debited to the actual asset class obtained. the actual asset obtained for the £50K is essentially goodwill.

if not, and on the transfer of the trade you dr divis received, cr goodwill etc how would you treat the investment in company A's account. would this just be a loss on investments in the accounts?

also if you can't recognise the goodwill as its from a connected company, where does the Dr go to in the accounts to account for the transfer?

thanks again

Tim

Excellent  - many thanks. this makes sense to me.

I assume that if the goodwill was not recognised in co. A (as its internally generated) it would then just be dr to the P&L, although obviously no tax deduction for company A.

I'll repost to focus just on the accounting treatment

thanks

Tim