Entrepreneurs Relief on Value of Goodwill...
The Chancellor’s Autumn Statement included the announcement that Entrepreneurs’ Relief will no longer be available on a disposal of ‘the reputation and customer relationships associated with a business’ – ie the ‘goodwill’.
At the same time, corporation tax deductions on the amortisation of the value of goodwill are restricted. This removes a tax advantage previously enjoyed by individuals, partners and trustees on the transfer of a business to a company.
This measure will apply to all disposals of goodwill to a related c lose company on or after 3rd December 2014.