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.

Documents

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

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.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

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