Goodwill Write off on Post Office Closure | AccountingWEB

Goodwill Write off on Post Office Closure


   Can anyone help me on this please:-

   I bought a Post Office 6 years ago and paid goodwill to the seller ( which equated to 18 months monthly Post Office income). I am self employed but paid by the Post Office by transaction volume.

   Under the Post Office Network Transformation Plan (and with my agreement)  my Post Office is moving into a  convenience store.

   They effectively get the business for free and I get 18 months voluntary redundancy from the Post Office.  I am happy with this as I am getting back my investment and a little more as I have built up the monthly transactions.

   With regards to the tax on closing the business.  I assumed that when I 'give' the business away I could write off against profits the whole of the goodwill.  However when I have gone on the HMRC website they are no help at all.

I am hoping that given the amount of PO closures in recent years that one of you may know the answer.