Joe Brough explores the corporation tax relief available on the amortisation of goodwill for companies since April 2002.
Prior to April 2002, where a company purchased goodwill, there was no tax relief available against profits on its subsequent amortisation. The goodwill was dealt with under the capital gains rules, with a company realising either a capital gain or capital loss on its eventual disposal.
Intangible fixed assets
From 1 April 2002, the availability of tax relief for the amortisation of goodwill for companies has gone through several changes. Where goodwill has been acquired by a company by virtue of a business acquisition or as the result of an incorporation, the changes have gradually reduced the tax relief available. The latest changes, which came into effect from 1 April 2019, have restored some element of tax relief on the purchase of goodwill; however, they
