My company is selling its business as an asset sale, not a share sale. The major assets are intangibles that I have built up since the company was formed in 1994. These consist mainly of the customer database and 'goodwill' i.e the trading name. Over 85% of the purchase price is for these two assets. I can see how the company can claim indexation allowances on assets that it has purchased, but I'm worried that as my assets have been built up over time rather than purchased, that I cannot claim indexation allowances or any other sort of allowances. Or have I got it totally wrong?
Any advice or opinions would be much appreciated - thank you
Indexation allowances on non-purchased goodwill.
2 posts • Page 1 of 1
by Instinctive on Wed Sep 07, 2005 12:09 pm
In my opinion you indexation allowance is only claimable on actual cost. therefore, I fear that you are correct in thinking that no indexation allowance will be due on built up goodwill.
Depending on the amount of potential tax, you should consider sale as a share sale rather than asset sale, that is if the buyer agrees to this. You may then have the benefit of taper relief.
Ramnik
Depending on the amount of potential tax, you should consider sale as a share sale rather than asset sale, that is if the buyer agrees to this. You may then have the benefit of taper relief.
Ramnik
- Instinctive
- Posts: 1810
- Joined: Wed Aug 06, 2008 3:15 pm
2 posts • Page 1 of 1
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