A partnership was created to buy an existing business, paying £X for the goodwill and the balance for equipment, from an unconnected party.
The partnership is now making good profits and the partners would benefit from incorporation.
The value of the business is now substantially more than it was when purchased.
Am I correct to presume that tax relief would be available on the difference between the original purchase price and the new value to newco, or would it be disallowed?
Note I wasn't advising when they commenced trading otherwise I would have suggested incorporation prior to the purchase!
Your help greatly appreciated.