Q: I am reviewing my client’s historic corporation tax returns, the business was incorporated in 2011 with goodwill being bought across into the company’s balance sheet. Could the company have claimed tax relief on the amortisation of the goodwill when it originally incorporated?

A: The corporation tax rules dealing with goodwill have chopped and changed over the years. The advice below is solely in relation to goodwill acquired in 2011 as set out in this scenario.

A transfer between a sole trader and the company in which they control is a related party transfer under the intangible fixed asset (IFA) regime. A related party is defined under section 835 Corporation Tax Act 2009 (CTA 2009).