Goodwill: Sole trade to Partnership to Ltd Company
Please could someone point me in the right direction regarding my query...
In simple terms, my father commenced as a sole practioner some 20+ years ago after initially purchasing a small client base for lets say £1k which was classed as goodwill in his accounts.
Around 5 years ago, I joined forces with him, along with a fellow family member and we formed a new partnership. The assets of the sole trader, including the £1k goodwill were transferred into the partnership... the goodwill at this point would have had a value of, say £30k.
The client base has grown since 2007 and we have recently taken the decision to form a Ltd Co. The assets of the partnership wil be sold to the Ltd Co and these will include goodwill now valued at approx £80k.
Now, I am aware that goodwill created after Apr 2002 creates an allowable tax deduction equal to the amortisation charge - and my question is... could the "goodwill created wholly after Apr 2002" be classed as £50,000 (IE. £80,000 less £30,000) and a tax deduction claimed for the amortisation charge over the next however many years?
Or, am I on the wrong track?
Thank you for any help, relevant guidance.
- Taxfiler - SA100 - More efficient? 428 5
- See you all on the other side 603 6
- 12Pay 317 2
- dividends 419 2
- R&D 237 1
- Quarterly Reporting - The Logistics 1,110 17
- Auto enrolment contribution rates 396 3
- How long are you waiting for appeal reply 302 4
- Borrowing money to loan to company 265 1
- Mother as Guarantor for Son's mortgage 492 5
- Seeking a tax case 541 9
- When do we qualify for state pension? 411 4
- Companies house strike off 381 3
- Tax treatment of alterations to property 298 2
- Moving to the cloud 690 9
- Iris open space/doc exchange for SATRs 193 2
- How much to charge for payroll? 835 16
- Unincorporated charity transfer to CIO 186 4
- BTC vs Digita 1,056 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 438 4
- HMRC Joint Filing 539
- Capital Contribution towards a company car 409
- Capital Reduction & Impact on EIS Shares 359
- IRIS and FRS 102 341
- Capitalising Finance Lease 304
- USA help 303
- National Minimum Wage issue on Directors joining a Workplace Pension 275
- Dormant company accounts under FRS 102 263
- Capital gains on rental property 246
- Sage Coretime 226