Tax Writer
Share this content
Calculator
istock_kanizphoto_aw

Accountant’s personal goodwill did not exist

by

Chartered accountant Neill Dyer [TC07567] asserted that he had sold personally held goodwill to his company for £1.2m, and claimed entrepreneurs relief (ER) on the gain. HMRC and the FTT disagreed.

24th Apr 2020
Tax Writer
Share this content

To understand why HMRC was dismissive of the idea that Dyer could transfer personally held goodwill to his company it is necessary to review the history of Dyer’s accountancy practice. 

Practice history

Dyer established an accountancy practice (Dyer & Co) as a sole trader in 1988. Between May 1996 and August 2003, Dyer traded in a partnership as Dyer & Co.

Register for free to continue reading

It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can:

View all AccountingWEB content
Comment on articles
Watch our digital shows and more

Access content now

Already have an account?

Replies (4)

Please login or register to join the discussion.

avatar
By rememberscarborough
27th Apr 2020 10:22

When something like this can go all the way to a tax tribunal it shows what a swamp our tax system is....

Thanks (0)
avatar
By vstrad
27th Apr 2020 13:08

Would there be any correlation between the value of goodwill sold and the amount of money available in Services Ltd to pay for it?

Thanks (0)
Replying to vstrad:
avatar
By whitevanman
29th Apr 2020 11:29

No!

Thanks (0)