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