In Mertrux Ltd v HMRC (CA – 9 July) a company (M) had carried on a business of selling Mercedes cars. In 2003 it sold this business in return for consideration of £1 705 502. M claimed rollover relief on the basis that the gain arose from the disposal of its goodwill. HMRC disallowed 50% of the claim on the basis that only 50% of the consideration should be treated as attributable to goodwill and that 50% was compensation for the loss of M’s agreement with the car manufacturer which did not qualify for relief under TCGA 1992 s 155. The CA unanimously dismissed M’s appeal. Patten LJ observed that part of the payment (described as a ‘territory release payment’) ‘became payable under a variation of the franchise agreement which reserves the right to control the use of the Mercedes mark’. On the evidence he held...
