Two changes were announced in the Autumn Statement to the treatment of goodwill on incorporation, which had immediate effect from 3 December 2014.
These were as follows:
The Autumn Statement in December 2014 included a surprise amendment to the rules affecting how goodwill is treated on the incorporation of a trading business.
Here is a brief note of some of the changes announced by the Treasury on 3 December 2014 and a reminder of some other things that will come into force on 5 April 2014.
It’s never a good sign when a perfectly good tax relief is mentioned in the Autumn Statement
Yesterday, George Osborne, banned the use of Entrepreneurs Relief (ER) to be claimed when an unincorporated business incorporates and creates Goodwill which is then credited to the Driectors Loan A
We have a new client (year end 31 March) who is writing off goodwill over 20 years. They have written off eight years so far.
To date we've only really had minimal goodwill valuations so haven't bothered getting pre approval (as the impact either way was negligible). However, we've got a fairly hefty one we're looking at
Does anyone know the treatment of goodwill on consolidation under GAAP? FRS 6 seems to suggest that Goodwill should be taken through the Restructuring reserves in balance sheet.