Window Cleaner

Window Cleaner

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Hello

A window cleaner, who is a sole trader has acquired 3 rounds

Are these treated as goodwill in the accounts, and if so how long should it be amortised over (or does it matter)?

I am assuming there wil be no tax relief for the amortisation as he is a sole trader but can anyone confirm?

Thanks in advance

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By rohit
23rd Nov 2012 10:45

Sole Trader Goodwill Amortisation

Not sure about your 1st question but for the second one unfortunately no is the answer, the amortisation isnt tax deductible and must be added back. Tax deduction on goodwill amortisation is only available to limited companies.

On disposal of the business, the goodwill will be treated under the capital gains tax regime i.e. disposal proceeds less base cost.

 

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