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Taxation of goodwill received (self employed)

I'm rusty on treatment of goodwill receipts on sale of self employed business.

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If a self emploment business owner sells the concern to another self employed person for a total £150K (Net assets £10K, Goodwill £140K), is the seller liable to Income Tax on the £140K ?  Is the £140K declared somewhere on SA tax return ?   Are there any tax reliefs avalable to the seller ?

 

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RLI
By lionofludesch
14th Aug 2019 15:59

The good news is that there's no Income Tax.

However, it's not all good news; there's Capital Gains Tax to pay on the gain on goodwill.

What did it cost ?

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By SXGuy
15th Aug 2019 08:27

Capital gains tax. I suggest you find an accountant quickly as it seems its way above your knowledge. I'd also get someone to check over how you have valued the goodwill as well

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By Tax Dragon
15th Aug 2019 08:46

VAT.

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RLI
By lionofludesch
15th Aug 2019 10:04

The point's well made but the opening line implies that the whole business is being sold.

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By Tax Dragon
15th Aug 2019 13:24

Good spot.

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