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Our client traded for several years as a sole trading self-employed independent financial adviser. The business was then incorporated in June 2003. Goodwill was valued — we believe realistically — at £12,500 and was sold to the company. The capital gain on this asset was covered by the business asset taper relief and the annual tax exemption. The goodwill has been amortised in the company accounts, but no tax relief has been claimed by the new company because it was a pre-April 2002 asset that had been transferred from a connected person.
Our client traded for several years as a sole trading self-employed independent financial adviser. The business was then incorporated in June 2003. Goodwill was valued — we believe realistically — at £12 500 and was sold to the company. The capital gain on this asset was covered by the business asset taper relief and the annual tax exemption. The goodwill has been amortised in the company accounts but no tax relief has been claimed by the new company because it was a pre-April 2002 asset that had been transferred from a connected person.
Our client has now decided to leave the network to which he was attached and to be subject to direct regulation by the Financial Services Authority (FSA) who have advised him that he cannot trade through his existing company as it is not permitted to have goodwill. Our client has therefore set up a new...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
