Sale of Goodwill
Hi,
If a company is downsizing and receives e.g. £50,000 for part of its sales customer list, how is this accounted for in the annual accounts. Is it a P and L item which then attracts corportation tax or is it a balance sheet entry and if so I would Dr bank with the £50,000 but Cr which account?
I would be really grateful for any comments or advice please.
Capital disposal
Whether it's treated as a capital gain or gain on disposal of an intangible fixed asset will depend on when it was created - when did business commence? Either way, it is taxable profit.