Purchased Goodwill

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

  • TreadStone
    TreadStone AAT Licensed Accountant Posts: 280 ? ? ?
    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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