I incorporated last year from being self employed to limited company. My accountant took care of setting the company up, but I've only just learnt of 'goodwill' and how this could have been transferred. Have I missed a trick by not transferring goodwill?
I've done some reading and can't get my head around if I've missed out on any benefits by not transferring goodwill, so I hope someone can enlighten me. I can tell you want I've learnt, and then hopefully someone can tell where I've gone wrong and set me straight.
I understand that the value of goodwill is subjective, and that's for another post. I understand that since 2014/2015 when the policy changed goodwill no longer benefited from tax relief, however, there would still be a benefit from tax relief once company is sold. Is this correct? If so, it would have still be beneficial to transfer goodwill as I would benefit from being able to off set the cost of goodwill against corporation tax once the business was sold. Have I got this correct, or am I horribly wrong? I hope it's the latter as would mean I haven't missed out.