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How does a soletrader deal with goodwill?

How does a soletrader deal with goodwill?


I am completing accounts/SA for a sole trader who has bought a business that has goodwill included in their balance sheet valuation.  I wanted to check what the correct treatment was for amortising goodwill for a sole trader?  Whether there were any specific write down rules?

I also understand that tax relief can not be claimed on the goodwill amortisation?  Could somebody clarify the situation for me? 

Thank you for your help


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16th Jan 2012 11:06

Goodwill is only relevant to a sole trader in the sense that it has a base cost, should they ever sell it.

They get no tax relief on amortising it, so why bother?


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