Background Note
11.The corporate intangible fixed assets regime was originally introduced as Schedule 29 to the Finance Act 2002, following consultation, and is now contained in Part 8 of the Corporation Tax Act 2009. It deals with the corporation tax treatment of intangible fixed assets such as patents, trademarks and design rights as well as the tax treatment of goodwill.
12.Currently, some companies are taking a contrary interpretation to HM Revenue & Customs (HMRC) of certain rules governing the treatment of goodwill. The purpose of this section is to confirm that the rules governing the treatment of goodwill operate as intended, and in the way HMRC considers that they do already.
13.The section confirms that for the purposes of the corporate intangible asset regime goodwill includes ‘internally-generated’ goodwill, and that all goodwill is created in the course of the carrying on of a business and is subject to rules determining whether goodwill is treated as being created before or on or after 1 April 2002.
14.The legislation applies for the purposes of accounting periods beginning on or after 22 April 2009, and the part of any accounting period straddling this date which falls on or after 22 April. This includes for the purposes of calculating the future tax consequences of past transactions.
