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Autumn Statement 2014: Business tax - writing off Goodwill

Scott Burkinshaw - 4 December 2014

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Key points from the Chancellor's Autumn Statement 2014:

In addition to the Capital Gains Tax Entrepreneurs’ Relief changes to restrict favourable tax rates on incorporating goodwill in a company, the Chancellor has also changed the way companies can claim tax relief on the goodwill purchased.

In certain circumstances the company could write off the goodwill against profits and therefore claim Corporation Tax relief on the write-off.

With immediate effect, no company will be able to claim a tax deduction for goodwill where it was bought from an individual or partnership and transferred to a company owned by the seller of the goodwill.

This removes a further benefit of incorporating a sole trade or partnership so it is important that careful consideration is given to both commercial and tax issues prior to incorporating your business.

Contact Scott Burkinshaw for details of how this might affect you.

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Scott Burkinshaw

I am Head of Business Taxes at Shorts, where I lead our specialist Radius team focusing on R&D tax relief. As a Chartered Tax Adviser with over a decade of experience at national and international firms, I work with businesses and their owners to provide strategic corporate and personal tax advice. My expertise includes R&D tax relief, business disposals and acquisitions, and long-term tax planning, helping clients achieve their goals in the most efficient way.

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