Goodwill

Dottie
Dottie Registered Posts: 99 Regular contributor ⭐
Sale of shop. Seller received £8000 for stock, £1000 for fixtures and fittings and £1000 for goodwill. How is the goodwill treated for tax purposes? Advice greatfully received!

Thanks
Dottie

Comments

  • peugeot
    peugeot Registered Posts: 624 Epic contributor 🐘
    Goodwill is just proceeds over and above the fair value of the net assets acquired by the purchaser.

    The goodwill figure should be treated as part of the proceeds when calculating the capital gain.

    Kind regards
    Steve
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