Policy paper
Capital Gains Tax: denying Entrepreneurs’ Relief for disposals of goodwill to related companies
This Tax Information and Impact Note is about denying Entrepreneurs’ Relief (ER) for disposals of goodwill to related companies.
Documents
Details
This measure will mean that ER will not be available to reduce Capital Gains Tax on disposals of the reputation and customer relationships associated with a business (the ‘goodwill’) to a close company to which the seller is related.
This change is made alongside a measure to restrict Corporation Tax deductions when goodwill is acquired from a related party on incorporation.
A draft legislation for this measure has been published at Draft legislation: Capital Gains Tax - denying Entrepreneurs’ Relief for disposals of goodwill to related companies.