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By johngroganjga
20th Dec 2014 15:12

Out of date
Your reference to wanting to obtain Entrepreneur's Relief suggests that your advice from your accountant must have been provided before 3 December and not been updated since. I suggest that you have another discussion with your accountant and then start again.

But on your valuation point - yes it's the expected future earnings that are relevant not the past earnings.

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By mw80
20th Dec 2014 19:38

Best course of action under new rules?
Hi John,

Thank you for taking the time to reply. I hadn't heard the news from 3 December nor, it seems, is my accountant yet aware of it (a cause for worry in itself!).

This is, of course, very disappointing news. I wonder if you have any views on the following two questions.

1. Do my business' assets in this case (domain names, code) actually constitute goodwill (thus making them ineligible for ER under the new rules), or are they real assets not classed as goodwill?

2. What benefit is there to me, in the light of these new rules, from transferring the assets of the business to the new company, if it'll only trigger a capital gains bill at 28%? This makes me wonder if it would be better to hold the intellectual property of the company elsewhere (perhaps even offshore, as I may well become tax resident elsewhere in the future), and charge the company a royalty for its use. Is there any mileage in this idea?

Thanks again,

Matt

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