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I’m sorry I keep coming up with so many doubts.
It’s about Goodwill.
In section 4, Rollover relief, goodwill is included.
But in section 6, gift relief, goodwill is not included. My question is why is it not included in gift relief?
And another question I had is if a remaining gain didn’t qualify for BADR after a gift relief has been claimed, then what would the potential treatment be?
Thank you once again.
The tax rules around goodwill are very complicated due to the intangible nature of the asset, but all you need to know is that goodwill is generally not a qualifying asset for gift relief.
If a gain remains after a gift relief claim does not qualify for BADR, then it would be taxed at the normal rates of 18%/24%.
How often is Goodwill asked in the exam related to rollover relief? I’m a bit worried about this one that’s why.
I have understood the rest that you’ve explained.
Thank you so much.
It’s not usually examined computationally in a rollover relief context, but in an objective test question you may be asked something like ‘which of the following are/are not qualifying assets for rollover relief’.
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