A successful Limited company has two 'core' director/sharholders. Someone has advised them to close the Limited company, and trade from an LLP. They have been advised that, as they are the 'goodwill', it can be capitalised in the LLP with a corresponding credit to their capital accounts as tax free money. Crazy? I think so!
Your shared thoughts please.
The person stated he has done this before, and had no comeback. For some reason unknown as yet, he wants the goodwill (which has been calculated and is substantial), to be 'phased in' to the LLP in stages over five ish years. The LLP will be subject to audit, so goodness knows the accounting treatment/policy that could be adopted here! I
Once again, while my jaw is open, your comments here please.
Thanls
Tax free goodwill credit??
2 posts • Page 1 of 1
Tax free goodwill credit??
by alanpaulwilson on Thu Aug 25, 2011 3:49 pm
- alanpaulwilson
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Re: Tax free goodwill credit??
by pawncob on Thu Aug 25, 2011 10:25 pm
http://www.hmrc.gov.uk/manuals/cirdmanual/cird30535.htm
With a pinch of salt take what I say, but don't exceed your RDA
- pawncob
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- Location: West Sussex
2 posts • Page 1 of 1
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