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Issue:
4492
/
Categories:
Comment & Analysis
, entrepreneurs relief
, Business
, Capital Gains
, Partnerships
Withdrawal of entrepreneurs’ relief on incorporation has hidden traps for partnerships
KEY POINTS
- The draft legislation withdrawing entrepreneurs’ relief for the transfer of goodwill on incorporation may have unexpected implications.
- A retiring partner can claim relief on the disposal of his share of goodwill.
- Problems may arise if taxpayers are associates.
- Delaying the incorporation may not solve the problem.
- HMRC say that their policy is not to deny relief to individuals who are genuinely retiring from a business.
No you haven’t accidentally picked up a celebrity gossip magazine and this is not yet another article about Gwyneth Paltrow’s divorce.
It may be about the end of partner relationships but the business kind.
The draft legislation dealing with the recent changes to capital gains tax entrepreneurs’ relief in relation to goodwill contains a potential catch for those...
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