A business has purchased another company (both are limited companies). It paid £550,000 for the new subsidiary, with net asset value of £475,000 so goodwill of £75,000.
I have a Newco that has incorporated a specific part of a related party partnership business.(partnership continues to trade)
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.