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.
- Property Expenses 153 4
- Swiching tax 466 14
- Accrued salary unpaid 217 4
- Generic notification message 223 4
- Mortgage Adviser's request 299 7
- Where do Balance Sheet Gains get recognised in CT600? 761 37
- P60 from HMRC Basic Paye Tools 4,132 18
- Basis periods 44 1
- P&L Treatment of property assets 67 2
- CGT on spouse's death 282 11
- Tax relief for networking day out? 468 12
- VAT on non-denominated postage 71 2
- Starting Again 284 11
- Is cloud accounting software all just pie in the sky 643 19
- CT101 Completion 135 1
- Non resident pension withdrawal 149 2
- P11D Software 780 9
- PAYE Dashboard inconsistency 205 4
- Why can't I paste into AccountingWeb? 274 5
- Can shareholders lend to their company at interest? 396 10
- Construction CIS LLP Company 597
- Services via intermediaries and new HMRC reporting requirements 583
- LIVE: Budget aftermath webinar 382
- Pensions Regulator 349
- NIC contribution on unremitted income 285
- Using the correct forms 263
- SA penalty proposals 252
- RTI - duplicate employee record 245
- Accelerated payment notices 230
- How hard is it to reduce a code? 221