In K Mulloy v HMRC [2016] UKFTT 243 (13 April 2016) the FTT refused to allow a deduction for expenditure relating to goodwill (under TCGA 1992 s 38) when computing the CGT due on disposal of a business.
Mr Mulloy had disposed of his business and the issue was the extent of the costs allowable. He claimed that he was a long term creditor or investor of the business and that some of his lost debt/investment should be allowed as a deduction. He also contended that much of the expenditure he had incurred during the life of the business was capital in nature and should be allowed as a deduction in computing any chargeable gain.
The FTT observed that Mr Mulloy had carried out his business as a sole trader so that there had been...
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In K Mulloy v HMRC [2016] UKFTT 243 (13 April 2016) the FTT refused to allow a deduction for expenditure relating to goodwill (under TCGA 1992 s 38) when computing the CGT due on disposal of a business.
Mr Mulloy had disposed of his business and the issue was the extent of the costs allowable. He claimed that he was a long term creditor or investor of the business and that some of his lost debt/investment should be allowed as a deduction. He also contended that much of the expenditure he had incurred during the life of the business was capital in nature and should be allowed as a deduction in computing any chargeable gain.
The FTT observed that Mr Mulloy had carried out his business as a sole trader so that there had been...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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