If a limited company purchased goodwill prior to July 2015, and which had previously not claimed amortisation, and now for reasons that have affected the possibility of realising this goodwill in the future, wishes to claim amortisation of the goodwill for corporation tax purposes, is this possible? The original lease of the business was for 20 years, now with ten years remaining, could the business claim straight line amortisation over the remaining 10 years believing the residual value will be nil?

Arthur Weller replies:

If a company acquired goodwill from a third party (i.e. it was not an incorporation) before July 2015, then it can generally continue to claim amortisation as an allowable revenue deduction after July 2015, as it did before July 2015.