Tax relief on Goodwill

Will Farnell · Postby **Will Farnell** » Mon Jun 16, 2008 1:33 am

I am sure this question has been done to death however my understanding is that connected sole trader commenced 2004, incorporated 2006, then goodwilll is allowable to tax relief. I have had a couple of mixed responses one of which was from local tax office saying goodwill would not be allowable. This seems contary to the guidance in tolleys etc or am i missing something?

Previous accountants did not claim tax relief on first year, I am preparing second year accounts.

Grateful for members thoughts.

Thanks

Will

N-Tax · Postby **N-Tax** » Mon Jun 16, 2008 2:14 am

As the goodwill was created after 1 April 2002 you can claim relief via amortisation or impairment

taxattack · Postby **taxattack** » Mon Jun 16, 2008 4:29 am

But it has to be the right sort of goodwill!

See http://www.hmrc.gov.uk/manuals/cg4manual/cg68050+.htm

Regards
chris @ taxattack.co.uk

Will Farnell · Postby **Will Farnell** » Wed Jun 18, 2008 1:33 am

Thanks for the responses. I was certainly under the impression that as goodwill was created post 2002 it would be allowable. Just concerned that the tax office think it is not!

Will