United Kingdom Tax Agency Issues Guidance on Corporation Tax Relief for Goodwill, Other Intangibles Purchases

The United Kingdom HM Revenue and Customs June 4 issued guidance on changes to corporation tax relief for goodwill and other intangibles acquired through the purchase of a business. The relief is a fixed rate of 6.5 percent per year based on the lower of the cost of the relevant asset or six times the cost of any qualifying intellectual property (IP) assets in the business purchased. As of April 1, taxpayers may seek and claim this relief if: 1) goodwill and other intangibles are purchased along with a business that has IP; 2) the business is subject to corporation ...