In Greenbank Holidays Ltd v HMRC (Upper Tribunal – 13 April) a company (G) purchased the goodwill of another company (K) in the same group in 2003. In its corporation tax return G claimed a substantial deduction for the cost of the goodwill.
HMRC rejected the claim on the grounds that it had been created by K before 1 April 2002 and thus failed to meet the requirements of FA 2002 Sch 29 para 118.
The First-tier Tribunal dismissed G’s appeal and the Upper Tribunal upheld this decision. Arnold J observed that ‘it is manifest that what happened on 30 September 2003 was that (K) sold and (G) purchased that goodwill’.
The accounting treatment which G had adopted ‘did not mean that the goodwill either came into existence for the first time or that it was a...
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In Greenbank Holidays Ltd v HMRC (Upper Tribunal – 13 April) a company (G) purchased the goodwill of another company (K) in the same group in 2003. In its corporation tax return G claimed a substantial deduction for the cost of the goodwill.
HMRC rejected the claim on the grounds that it had been created by K before 1 April 2002 and thus failed to meet the requirements of FA 2002 Sch 29 para 118.
The First-tier Tribunal dismissed G’s appeal and the Upper Tribunal upheld this decision. Arnold J observed that ‘it is manifest that what happened on 30 September 2003 was that (K) sold and (G) purchased that goodwill’.
The accounting treatment which G had adopted ‘did not mean that the goodwill either came into existence for the first time or that it was a...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
