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GOODWILL

GOODWILL

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Hello,

I have a client who is purchasing a business. There will be an element of goodwill in the purchase.

I have an incline that i have to send a form to HMRC to be able to include the goodwill and the amortisation as a tax deductable expense, does anyone have a link to said form, alternatively what is the correct procedure?

Thanks in advance.

Kind regards

Aaron

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By BKD
18th Jun 2014 15:16

What is the status of the client?

Company or what?

Assuming that it is a company, and all conditions for relief are met, there are indeed forms. They are called accounts, tax return and tax computations.

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By DMGbus
19th Jun 2014 08:50

If connected parties

Where the buyer and seller are related to weach other the Goodwill value can be notified to HMRC prior to submission of tax returns relying upon a particular agreed value.   The link below shows the mechanism for doing this.

http://www.hmrc.gov.uk/manuals/svmanualnew/SVM105030.htm

If the parties are unrelated it is not usual to use this proceedure.

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By DMGbus
19th Jun 2014 08:51

Forms to notify HMRC

Dependent upon the nature of the transaction (buying shares, buying assets, Ltd Co or whatever) there may or may not (circumstances dependent) be forms to be completed to notify HMRC and Companies House, although not in the context of tax relief for amortisation of goodwill.

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By Together We Count
20th Jun 2014 17:00

Hi,

 

Thanks for your help, yes forgot to mention it is a company.

Thanks again.

 

Kind regards

 

Aaron

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