Part 8Intangible fixed assets

Chapter 2Credits in respect of intangible fixed assets

724Negative goodwill

1

If in a period of account a gain is recognised in determining the company's profit or loss in respect of negative goodwill arising on an acquisition of a business, a corresponding credit must be brought into account for tax purposes.

2

The amount of the credit is so much of the gain recognised for accounting purposes as, on a just and reasonable apportionment, is attributable to intangible fixed assets.