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New queries, issue 4200

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31 March 2009

Issue: 4200 / Categories: Forum & Feedback

Can contracts constitute goodwill?; transferring land to company director; loan of car to sportsman; treatment of FURBS pension on owner’s death

Is it goodwill?

I act for a sole trader who supplies labour in engineering contracting. The business is profitable and anticipated profits in the current year are £180 000. The client has determined to incorporate the business.

There are no chargeable assets beyond potential goodwill.

My client assures me that his trading name has no goodwill attached. It is a competitive business; he has contacts and tenders for the work and engages the labour.

No one would be prepared to pay any significant sum for the use of his trading name.

Why should they? If he were not tendering for the work there are plenty of other contractors.

He works from home the work is all carried out on site and he moves his men around the country to different sites as necessary.

It seems to me that there is no goodwill of any type here but...

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New queries, issue 4200

© Copyright LexisNexis 2024. All rights reserved.

31 March 2009

Can contracts constitute goodwill?; transferring land to company director; loan of car to sportsman; treatment of FURBS pension on owner’s death

Is it goodwill?

I act for a sole trader who supplies labour in engineering contracting. The business is profitable and anticipated profits in the current year are £180 000. The client has determined to incorporate the business.

There are no chargeable assets beyond potential goodwill.

My client assures me that his trading name has no goodwill attached. It is a competitive business; he has contacts and tenders for the work and engages the labour.

No one would be prepared to pay any significant sum for the use of his trading name.

Why should they? If he were not tendering for the work there are plenty of other contractors.

He works from home the work is all carried out on site and he moves his men around the country to different sites as necessary.

It seems to me that there is no goodwill of any type here but...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4200

Categories: Forum & Feedback [1]

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Readers forum: Claiming pre-registration input tax Practice tip: 19 December 2024 New Queries: 19 December 2024 Readers’ forum: Should I advise my client to declare income? Readers’ forum: Pension scheme set up as discretionary trust?

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