Purchased Goodwill

EllabobbinEllabobbin Feels At HomePosts: 92Registered
Is purchased goodwill a tax allowable deduction for corporation tax purposes?

The client purchased goodwill when they took over a business, which had previously incorporated in 2006 with no goodwill.

Am I able to allow for this in the accounts?

Thank you

Comments

  • TreadStoneTreadStone Feels At Home Posts: 280AAT Licensed Accountant
    Generally, if it's unconnected goodwill and arose after April 2002 then yes it's allowable for CT purposes.

    It will be amortised in the accounts over its estimated useful life regardless.
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