Goodwill & Rollover Relief

A Ltd company sold some goodwill and realised a capital gain of £500,000, thus incurring an additional Corporation Tax liability in that year of some £100,000.

Three years later A Ltd changed accountant to SMH and we discovered that the gain could have been rolled over into the costs of a patent they had bought 6 months prior to the sale of the goodwill. That would have resulted in no additional tax being payable, but it was now too late to make the claim and there was nothing SMH could do except advise A Ltd on the potential merits of a negligence claim against its former accountants.

 

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