Share this content
1
608

Purchase of new company help

Hey everyone,  this is my first post on here and i am really hoping you guys can help me and not  be to harsh on me for not knowing, but we all have to start somewhere :) 

here is my question, as i have no experience of a company purchasing another company, ( they didnt buy the company, but purchased the assets and goodwill only and tookover the business as a going concern)

They have purchased a pub and in the contract have bought

goodwill at 45k, this needs to be amortised, but this is no longer tax deductable is it? but i should still arrortise in the accounts spread over the 9 years remaining on the lease?

inventory at 10k which is fine

fixed assets at 10k, and nonfixed at 12k    (which im assuming is tax decductible as normal, but some will need depreciating? but there is no list of assets, so maybe im being dumb here but how can i do this without knowing the individual assets? ;/

the rest of amount they paid was for 53k which was for the leasehold property, does this have to be ammortised? and is this tax deductible?

the lease is 28k p/a and has 9 years left to run. a 3rd party own the building, and this is who the 29k p/a is paid to

so is this 53k considered to be a leasehold premium?

this is a ltd company and is vat registered.

thankyou in advance for any help although i will thankyou again later, i hope i explained it ok, but please can someone clear this up for me? or am i just to far off the mark that i should just give up and quit :(

thankyou!

 

Replies

Please login or register to join the discussion.

19th Aug 2017 21:45

We do indeed all need to start somewhere, but I think you should recommend that the client appoint somebody else, as this is certainly not a good place to start from.

Thanks (1)
avatar
to Tim Vane
19th Aug 2017 22:39

ok thanks

Thanks (1)
Share this content