Incorporatio

George Osborne announced that from 3 December 2014, entrepreneur’s relief (ER) will not be available on the disposal of a business and its goodwill to a company to which the seller is related, a transaction that happens frequently, which is designed to restrict unfair tax advantages on incorporation say Harris & Co accountants Northampton, the specialist small business accountants

 

Under the new rules, an individual’s gain on the sale of the goodwill will be subject to CGT at the normal CGT rates of either 18% or 28%, while under a parallel measure, the limited company will not be entitled to corporation tax (CT) relief on the gradual writing off of the purchase price of the goodwill.