Is it taxable?

Is it taxable?

Didn't find your answer?

I have a small Ltd Coy client who incorporated from a sole trader 2 years ago.

Unfortunately the goodwill valuation was challenged, and was increased substantially.

The effect of this is that goodwill is high in the Ltd acs, mirrored by a high credit balance DLA.

And the effect of that is intangible assets are not taken into account in Creditsafe Reports, thus his credit rating shows the company is massively insolvent.

I understand that if you wirte off the loan the credit balance is subject to CT as it is a "credit on a non-trading loan relationship".

Please can anyone give me some pointers on what to do, or where I could some advice?

Many thanks

Fellowcraft

Replies (1)

Please login or register to join the discussion.

avatar
By neileg
14th Apr 2008 13:51

Shares
If there's no prospect of paying out the DLA, you could issue shares which would regularise the balance sheet.

Thanks (0)