Summer Budget 2015 – Goodwill?

Goodwill – but not to companies!

In the Autumn Statement, the Chancellor announced that he was restricting unfair tax advantages on incorporation when he denied corporation tax relief for goodwill acquired from a related individual or partnership.

In the Summer Budget he has gone much further and withdrawn all relief for the amortisation of purchased goodwill and customer related intangible assets except in respect of acquisitions before Budget day.

Relief will still be available if there is a loss when the goodwill is sold, but this will not be treated as a trading loss, but as a non-trading debit, which will limit how the relief can be used.

If you would like more information on this subject, or anything else covered in the Summer Budget 2015, please contact a member of the Tax Team in your local office – or email us at action@wrightvigar.co.uk – we would be delighted to help you.