Capital Allowances on Acquired Goodwill

Hi all!

 

Need to tap those juicy knowledge-filled brains of yours again if I may?

 

I am aware of the CTA 2009 and the 'trading' intangibles rules for allowable deductions of amortisation / 4% WDA election.

 

My question is are such deductions allowable for acquired goodwill? If so, assuming a 20 year allowable UEL, it would be most beneficial not to make the 4% WDA (unless UEL > 25 years). For example, on the purchase of a company with a FV of £90,000 for £100,000 resulting in £10,000 goodwill, an allowable tax deduction of £500 would arise.

 

If the deductions are allowable, could you please post some links for evidence (HMRC / CTA / other). I searched through the CTA 2009 but navigating through that is harder than Chinese algebra.

 

Many thanks in advance,

 

Coeus.

Comments
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Joint choice

Marion Hayes |
Marion Hayes's picture

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blok |
blok's picture

Hi Marion and Block.

Coeus |

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blok |
blok's picture

Yeah I'm happy with the

Coeus |

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blok |
blok's picture

Clarification

Marion Hayes |
Marion Hayes's picture

Yeah I confused myself - not

Coeus |