Home For accounting professionals Tax
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Goodwill sold

Qualified2018Qualified2018 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?

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    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.
Sign In or Register to comment.