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Sam, Accountant
Category: UK Tax
Satisfied Customers: 6497
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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I now withdraw this query- as HMRC may challenge the

Customer Question

I now withdraw this query- as HMRC may challenge the creation of goodwill on the basis of it being 'personal'. Still welcome a comment if you have one, but maybe that's why there has been a delay replying? My query is on allocation of goodwill on the incorporation of a partnership. It is a husband & wife partnership – each partner has other employment outwith the partnership business which is as a graphic artist. The profits in the past have been split by discretion last i.e.13-14 was 90% to wife. This 9 month period, to 31st Dec 2014, i.e. up to incorporation, they have made a small loss (£2.5k) - due to a trip to USA to attend an industry conference and do some marketing, the cost of which should in fact benefit the ongoing company. To make best use of the loss I thought to allocate 90% to husband – is that ok? I have calculated Goodwill, weighting the results over the past 3 years, that there could be potential Goodwill of £13k – can or should this be allocated 50/50? Thank you, CAS

Submitted: 1 year ago.
Category: UK Tax