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Post Info TOPIC: Changes in Goodwill & Entrepreneur's relief Query


Member

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Posts: 11
Date:
Changes in Goodwill & Entrepreneur's relief Query


Hi, I incorporated about 3 years ago and have just filed my latest set of accounts to Companies House.  My company purchased goodwill of myself (sole trader) and I paid 10% on the sale of the business.  I have been writing off the goodwill amortisation over a 5 year period in my company account.

My query is, now that the laws have changed since the 3rd December I understand that this loophole is now closed but can I continue writing off my goodwill in my CT tax return considering I incorporated years ago?  My goodwill is worth £42,000 per year, a big saving on my my CT bill and I would rather not lose it if possible. 

Thanks



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Expert

Status: Offline
Posts: 1501
Date:

Assume that you started the sole trader business that you incorporated after April 2002?

See the attached on page 2 which states

"Companies already receiving relief for goodwill recognised on incorporation will not be 

affected."

So seems you can still claim the tax relief.

Though would advise you to speak to your accountant given the amount involved.



__________________

Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.

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