header-logo header-logo

Taxing matters

16 May 2019 / Peter Vaines
Issue: 7840 / Categories: Features , Tax , Commercial
printer mail-detail

In his roundup of the latest tax cases, Peter Vaines minds the GAAP, & ponders the difference between a car & a van

  • The tax position of goodwill of a professional practice.
  • Deciding whether a building is a ‘dwelling’.
  • Cars, vans and income tax on a benefit in kind.
  • Minding the GAAP.

The recent case of Richard Villar v HMRC [2018] TC 6983 considered the tax implications of a sale of goodwill by a professional person, and is very helpful in clarifying the law in this area.

Mr Villar had a successful medical practice and he sold the business as a going concern to Spire Healthcare Diagnostics Limited for £1m. Mr Villar said that the consideration should be assessed to capital gains tax. However, HMRC argued that the payment was subject to income tax.

A crucial part of the HMRC argument was that virtually the whole of the payment was attributable to goodwill and they said it could not be transferred to Spire because the goodwill was personal to him.

HMRC

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
The Court of Protection has ruled in Macpherson v Sunderland City Council that capacity must be presumed unless clearly rebutted. In this week's NLJ, Sam Karim KC and Sophie Hurst of Kings Chambers dissect the judgment and set out practical guidance for advisers faced with issues relating to retrospective capacity and/or assessments without an examination
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
back-to-top-scroll