A successful Limited company has two 'core' director/sharholders. A Tax 'Expert', has advised them to close the Limited company, and trade from an LLP.
Can you claim a tax deduction for the write-off of goodwill within an LLP's accounts (members all individuals)?
Do you mention this as a benefit when you talk to potential clients who you believe would benefit from incorporating?
One of my sole director clients has made a big name for himself since starting his company in 2005, designing and licensing trading software to the major players in the energy industry.
Client currently trades through LLP and as businesses is set to grow, this is being transferred to a limited company.
My client (ltd company) are selling goodwill only - their purchaser will walk away rather than buy the company's shares. Company has no other assets.
Steve Collings outlines the fundamental principles of accounting for goodwill and intangible assets and assess the differences between current UK GAAP, IFRS and the proposed IFRS for SMEs.