Goodwill sold
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Qualified2018
Registered Posts: 1
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?
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?
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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.0
