A corporate client of mine is selling approximately half of its business for £10,000 to a sole trader.
There will be approximately £1,000 of assets, the rest is goodwill.
To my mind therefore, the excess of £1,000 over TWDV of the assets and the £9,000 for goodwill will all be subject to corporation tax.
Is that correct? I can't think of any other way of structuring it to take advantage of any available reliefs. Have I missed anything?
Thanks for your help.
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Correct
There are other ways of structuring to reduce tax but the professional fees will easily outweigh the tax savings on such a small deal.