The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Business valuations are likely to be influenced in some way by goodwill or intellectual property. Most businesses will have some form of goodwill but some may have other forms of intellectual property.
In valuing company shares, the value may be dependent on the underlying value of some form of intellectual property.
The value of goodwill is generally derived from the difference between the total value of a business (usually computed under the capitalised earnings method) and the value of its net assets (after deduction of liabilities). Goodwill may be personal, connected with the premises (for example a hotel) or associated with the brand or trade name.
Negative goodwill could be indicated in a situation where the valuations of the individual physical and other intangible assets of the business (other than goodwill) will realise more than the sale of the whole business.
For information on valuation techniques relat
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.