Tax relief and goodwill

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.

Planning note:

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.

Get In Touch

For more information on this, any of our other services or for a free, no obligation consultation

enquiries@gjassociates.co.uk

Send us a Message

Stratford Upon Avon

3, The Courtyard
Timothy's Bridge Road,
Stratford-Upon-Avon,
Warwickshire,
CV37 9NP
01789 294484

Birmingham

Mayfair, London

Case Studies

Grenfell James Associates - The Senior Team

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. 

Grenfell James

Chairman FCA

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.

Chris Wood

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.

 

Alex Enstone

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.

David Murphy

Tax Director ACCA

Having started his training in industry, Mark qualified in 2006 and joined Grenfell James in 2010. He works as a client manager with a diverse portfolio of clients, with specialist knowledge of the medical profession. Mark is also an Audit manager in the practice. 

Mark Agrimi

Audit and Client Manager FCCA

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.

Hannah Watson

Client Manager ACCA

JP qualfied in 2014, having worked for Grenfell James since 2007. He is a client manager for a diverse portfolio of clients including those in the manufacturing and serivce industries. 

 

Jon-Paul Lawrence

Client Manager ACCA

"I think you do a great job. You are so approachable and flexible in terms of when you can meet us. "

Mckechnies independent tea and coffee bar.

"For our cash hospitality business, prompt, accurate numbers matter, and the ability to call quickly for break-downs and analysis. GJ is always responsive and ready to be on the case. We never feel short-changed. "

Andrew Knight. The Howard Arms Ilmington

"Fantastic all round service level. Tax return peace of mind and highly efficient. Thank you. "

Mr J McCarthy

"I am delighted with the professional and efficient way in which Grenfell James Associates do things. In particular, they return my calls quickly, do the things they say they are going to do and do them when they say they are going to. Since our group was established in 1991 they developed all the financial systems that robustly stood the test of time, coping with many millions of pounds of transactions "

Regent Square Estates

"Thank you Grenfell James for providing an excellent service for both me and Proco. Everything you have said and done has been spot on and on time. A great team and very friendly. Regards, from a very happy customer. "

Proco Coatings & Laminates

"Since taking over the accounting for our two businesses, Grenfell James have taken away any stress we have had in the past with our accounts. They have been very approachable and easy to talk to, enabling us a better understanding of how we need to run our business. "

Paul Stanley. A S Contracts Ltd.

"In the past we have been unfortunate to work with some less than reputable accountants. Grenfell James Associates have restored our faith in the accountancy business and assisted us with every aspect of our financial responsibilities. We now have a renewed confidence in our finances, knowing that all our affairs are being dealt with in an efficient and professional manner. Thank you to the whole team and we look forward to many years of working with you. "

NPD Design Consultants Ltd

"We have used the services of Grenfell James since the inception of our business. They advised us strategically through the incorporation of our partnership and have taken over our payroll function, aswell as advising us on a continuous basis on accountancy and business matters. The team are incredibly friendly, knowledgeable and their advice is always excellent. "

IO Studios

"Grenfell James have been an amazing partner, managing the pressures that come with taking a start up to a multi million pound concern in 18 months is never easy, but these guys were both strategic and responsive with great ideas and exacting execution   "

Roy Ferguson. The Perfect Cosmetics Company.

"JP has looked after my accounts for a couple of years now, & I have to say nothing is too much trouble for him. As someone who fully appreciates that I know my business, but will always be guided by those who are experts in their own respective discipline, I have never once sent a request or query & not had a reply almost instantly. Highly recommended!     "

Dean. Wootton IT

Get in touch

  • 3, The Courtyard
    Timothy's Bridge Road
    Stratford-Upon-Avon
    Warwickshire
    CV37 9NP
  • 01789 294484
  • 2 Moor Leasow
    Northfield
    Birmingham
    B31 3XL
    Mayfair
  • 0121 243 0482
  • 7-8 Stratford Place
    Mayfair
    London
    W1C 1AY

  • 0207 495 0304
School Supplier Banner   Supporting Stratford  

Contact Us




Input symbols