Q for the Accountants.

[digisatman]

Hi all,

Looking to purchase a small business on leasehold, and was wondering how to make the payment of "£10,000" to the current owner through the solicitor.

Should I make a single £10,000 payment, shown as "Fixtures and fittings", or a £5000 payment for goodwill + £5000 payment for Fixtures and fittings.

Which method will be more beneficial to me the buyer?

Thanks,

 

[bigtwin]

Unless you have an "interesting" solicitor, you'll have to structure it according to what you are buying, per the valuation: what is the goodwill actually worth?

Or you're into dodgy territory, and Mr Taxman isn't likely to see the funny side.