I have a new client, a hairdresser; they used to be a sole trader until incorporating as a Ltd company in Sep 2014. A friend of theirs does the books and prepares her personal tax return. I am currently preparing the accounts and Company tax return for the first year, Aug 2015.
The incorporation of the business wasn't disclosed as a disposal on the clients 2014/15 personal tax return. The business was worth about £55k, £5k assets, £50k goodwill. the client did try to sell the business for this amount in early 2014.
I'm assuming we need to amend the 2014/15 return to include the disposal. Do I need to complete a CG34 form to go to HMRC? Or can I just use the £55k valuation made by the agent when the client was looking to sell the business?
Also, as the company was incorporated pre 3 Dec 2014 I assume corporation tax relief is available on the amortisation of the goodwill?
Note: I am looking to claim incorporation tax relief rather the pay CGT.