06 Sep 2017
Goodwill is usually defined as the ‘extra’ value attributable to a business over and above its tangible assets.
In the vast majority of cases, when a business is sold a significant proportion of the sale price will be for this type of intangible asset: the goodwill of the company. This places a monetary value on the business's reputation and customer relationships, or as HMRC says in their guidance, in accounting terms, purchased goodwill is the balancing figure between the purchase price of a business and the net value of the assets acquired. Valuing goodwill is complex and there are many different methods which can be used and that vary from industry to industry.
The tax treatment of goodwill has changed in recent years. Until July 2015, a company which bought goodwill and certain other customer related intangible assets could claim corporation tax relief for the payment. This was done by writing off the cost of the goodwill over a period of years, otherwise known as ‘amortising’ the goodwill.
From 8 July 2015, no corporation tax deduction is available for the cost of purchased goodwill.
If you are looking at purchasing or selling a business we would be happy to advise you on the issues relating to the acquisition or sale. We can also help you structure the deal to maximise any available tax reliefs still available.
Vada Studios is a very successful music recording facility. The business had outgrown their existing premises, and had a vision to create one of the top residential recording studios in the UK.
A highly successful restaurant, butcher and retail business.
GJA have been the retained accountants for this property investment and development group for over 20 years. Imminently due to dissolve companies.
Proco approached us with an idea of becoming a distributor of a high-end product in the UK, supplying vinyl nationally.
In 2008 Tom Floate left his employer to set up his own business providing website services. Initially forming a partnership with his wife Rachel, they began trading IO Studios from their home office.
Barry the Butcher is a very successful wholesale butchery and retail business.
Grenfell has a broad range of experience and knowledge, working with clients from many different industry sectors. Grenfell is also the senior audit partner in the practice.
Chris works with a diverse profile of owner managed businesses to assist them to grow and retain wealth. Although Chris works with clients from a wide range of sectors, he has particular expertise in property, catering, consultancy and professional services.
Managing Director ACMA
Alex has worked for Grenfell James since 2002 and became a director in 2013. Overseeing our internal operations, he manages the flow of work and ensures we hit our strict deadlines. Alex also manages a portfolio of clients, with expertise in manufacturing and service businesses.
Operational Director MAAT
David has worked for Grenfell James since 2006. He heads up our tax team and is highly experienced with expertise in different industries and sectors.
Tax Director ACCA
Hannah qualified in 2016, having worked for the company since 2009. She acts as a client manager for a range of businesses, with expert knowledge of the equestrian and rural sector. Hannah also manages our payroll team.
Client Manager ACCA
Paul Stanley. A S Contracts Ltd.
Dean. Wootton IT
Andrew Knight. The Howard Arms Ilmington
Proco Coatings & Laminates
Regent Square Estates
NPD Design Consultants Ltd
Mr I Cameron
Mr J McCarthy
Mckechnies independent tea and coffee bar.
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