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2019-02-24

【Cross-Border Tax】

BUSINESS TAXATION: Goodwill to become partially eligible for relief again

An amendment to the Finance Bill 2019 confirms that goodwill acquired on a business purchase will soon be eligible for tax relief, but it will be capped at six times the value of the intellectual property assets being purchased in the deal.

Tax relief on goodwill was withdrawn in 2015, because of HM Treasury concerns that it gave entrepreneurs an artificial incentive to structure a business acquisition as an asset purchase, rather than a share purchase.

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