I should know the answer to this, just can't remember / get my head around it / find the right thing online.
When a business is sold (ltd is selling it's business, rather than shares being sold), for CT purposes what's the best way to split proceeds between assets & goodwill? What are the considerations?
Assets TWDV £nil
Assets NBV £14k
Proceeds £50k
Thanks
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Replies (4)
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Is this the same client as the consortium relief, ER and TOGC question? I thought that they were going to sell shares in Holdco.
If no indexation considerations re chargeable gains there is possibly not a great deal of difference where the proceeds are agreed to rest re the various parts sold, will all not, in the main, merely come into charge for CT purposes.
Key question is does seller have any purchased goodwill against which part of price may be allocated? Presume merely fixed assets and goodwill here? If he does then dates and treatment may need considered.
Slightly different position for the buyer.
https://www.gov.uk/tax-when-your-company-sells-assets/intangible-assets
No goodwill in the company or business.
Looks like no difference to my client (seller), but buyer would prefer high FFE value, so that’s what client will go with.
Thanks
