Purchase of trail commission

Purchase of trail commission

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I have a client who is a financial advisor.  He has recently purchased the business of another IFA.  The price was split between the purchase of trail commission and goodwill.  I know that the amortisation of goodwill will not be allowable as he doesn't trade as a limited company but what about the purchase of the trail commission which is a substantial element of the purchase price.

Thanks

Alison

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By chicken farmer
12th Aug 2014 20:55

Capital expenditure, surely?
He has purchased a capital asset- the right to an income stream. Therefore no revenue deduction.

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Replying to PERMON:
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By Alisondodsworth
13th Aug 2014 15:23

Thanks

I thought that was the case but always worth getting someone else's opinion!

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