Goodwill purchased from father in 2003

Goodwill purchased from father in 2003

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Hi,

Daughter and son in law form a company and company buys assets and trade from father in 2003.

The father was trading pre March 2002.

Unsure if the father was trading as a company or sole trader or if this will have any relevance.

We do however know the daughter and son in law were not involved in the business prior to their company purchasing it.

Is the amortisation of the goodwill allowable against the company's profits?

Have reviewed CIRD10160 - Intangible assets and related parties and CIRD45000 - Intangible assets and related party rules and the schedules contained within those contents, but struggling to conclude if this transaction would count as being from a related party or not.

Any help would be much appreciated.

Matt.

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By Exector
18th Nov 2014 12:28

Why not? CIRD45250 & CTM60150

3rd test as outlined in CIRD 45105 & 45250 and in CTM60150 associate of a participator includes a husband or wife & parent or remoter forebear. Daughter participator controls co with associate husband, co is close, goodwill received from associate, her father (co or s/e not relevant assuming he controlled  any co) & pre 31/03/02 origin. Old rules apply, not Corporate Intangible.

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By Matt.Brady
18th Nov 2014 15:55

Thank you very much Exector.

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