Goodwill amortizsation - tax deductible?
I’m a director of a limited company (Co1), although do not own any shares. I want to form a new ltd company (Co2) and purchase the goodwill from Co1, for say £1.5m, which will be amortized over 10 years at £150k per annum. Co1 was formed in 2009, having purchased the goodwill of one of the directors (not me) personally (which he traded as a sole trader for some 20 years before).
Am i correct in saying that the purchase will be form a connected party (due to then common directorship) but that as Co1 was formed after April 2004, Co2 can use the £150k annual amortization as a tax deductible expense (i.e reduce profit and corporation tax)?