I'm currently preparing my first set of accounts for a client who has goodwill on the books and I just want to check if the following is correct:
1. Goodwill in the accounts is amortised as normal - e.g £10K good will, 20% Straight Line, first year charge = £2K
2. Due to removal of Corp Tax relief on goodwill, this £2K will need to be added back in the corp tax return? i.e can not be deducted from trading profits as with other normal business expenses
Replies (2)
Please login or register to join the discussion.
If it is not allowable for CT then of course it needs to be added back in the CT computation.
The key word in that sentence of course being the first one. Non-deductibility is only implied in the question.