Rachel Gauke comments on the Court of Appeal decision concerning goodwill and roll-over relief.
In Mertrux Ltd v HMRC the Court of Appeal upheld a decision of the Upper Tribunal which had allowed HMRC’s appeal against the decision of the First-tier Tribunal that the taxpayer had been entitled to roll-over relief on the basis that a payment that was made as part of the sale of its business had been wholly in respect of goodwill.
What were the facts of the case?
Mertrux was a car dealer which sold Mercedes cars under a dealer agreement with Daimler-Chrysler. Daimler-Chrysler wanted to terminate the agreement and this led to a dispute with Mertrux. The dispute was settled and under the settlement Mertrux was entitled to a payment called a territory release...
