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.

Reference:

HMRC  Capital gains tax: denying entrepreneurs’ relief for disposals of goodwill to related companies