Purchased goodwill

Sole Trader A has been trading for 20 years. He sells the business to Sole Trader B in Aug 2013 for £23000 (£3k P&M plus £20k goodwill). B trades as a sole trader until April 2014 when he incorporates the business, and sells on the goodwill to B Ltd for £20k. Will the goodwill be allowable for tax in the accounts for B Ltd?
Also, the other part to the question is whether it will make any difference that B is paying the money to A over 5 years?
Hope someone can help!
Thanks
Jodie
Also, the other part to the question is whether it will make any difference that B is paying the money to A over 5 years?
Hope someone can help!
Thanks
Jodie
0
Comments
This might help TCGA 1992 s165
Hope it helps