Goodwill sold

Qualified2018Qualified2018 Registered Posts: 1
in Tax
Hi Everyone
A company sold its customer/client base during its cessation period. for £30k .There was no corresponding intangible asset on the balance sheet prior to this. No initial cost therefore. Can someone confirm the accounting and tax treatment for this please? Do i need to take indexation allowance into this too?

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,360
    The indexation allowance is applied on the initial cost so if your cost is nil there is no point applying the IA.
    The chargeable gain is therefore 30K.
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