Policy paper

Draft legislation: Capital Gains Tax - denying Entrepreneurs’ Relief for disposals of goodwill to related companies

This draft legislation is about denying Entrepreneurs’ Relief (ER) for disposals of goodwill to related companies.

• From: HM Revenue & Customs
• Published: 3 December 2014

Documents

Draft legislation: Capital Gains Tax - denying Entrepreneurs’ Relief for disposals of goodwill to related companies

PDF, 131 KB, 1 page

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Explanatory note: Capital Gains Tax - denying Entrepreneurs’ Relief for disposals of goodwill to related companies

PDF, 150 KB, 3 pages

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 Tax Information and Impact Note for this measure has been published at Capital Gains Tax: denying Entrepreneurs’ Relief for disposals of goodwill to related companies.

Published 3 December 2014