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I have been advising clients that, upon incorporation, any goodwill paid for by the new company qualifies for a gradual tax-writedown under the intangible assets regime, provided that the goodwill was created after 1 April 2002 (FA 2002, Sch 29 para 118(2)(c)). But looking at the recently enacted
I have been advising clients that upon incorporation any goodwill paid for by the new company qualifies for a gradual tax-writedown under the intangible assets regime provided that the goodwill was created after 1 April 2002 (FA 2002 Sch 29 para 118(2)(c)). But looking at the recently enacted
FA 2006 maybe this is no longer so. Section 77 appears to concern royalties and the like but Sch 29 new para 127B seems to move away from this and deem all assets acquired from related parties as 'existing assets' (and therefore ineligible for relief under the intangible assets regime) with effect from December 2005.
Do readers agree that this quietly blocks any future writedowns of incorporation goodwill acquired by new companies over the last three years or so?
Query T16 886 — ARA.
Reply by Keith Gordon Atlas Chambers:
ARA is correct when...
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