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A financial adviser carried on his business as a sole trader before incorporating several years ago. At that time, goodwill was considered personal and was retained by him. Tranches of customers are being sold, but are these personal, corporate or joint disposals and do the sale of income provisions apply?
A client Mr X (or his company) has recently disposed of two tranches of goodwill and I am concerned as to whether corporation tax income tax or capital gains tax is applicable.
Mr X is in the financial services industry and having traded for many years on a self-employed basis incorporated his business on 16 May 2009. At this time any goodwill remained with him rather than being sold to the company. This was obviously because it was thought to be of a personal nature.
During 2011/12 some of the business’s customers were “sold” for £200 000 and a further tranche has just been sold for £250 000.
There are a few customers remaining but should those disposed of have been apportioned between Mr X and his company?
Many of these customers came on board after incorporation so does this create both capital...
