Corporation Tax Act 2010 section 357OI

Goodwill

Section 357OI establishes when goodwill is treated as having been created for the purposes of determining whether it qualifies as a pre-commencement intangible fixed asset under the Northern Ireland rate provisions.

• Goodwill receives special treatment when determining whether it is a pre-commencement asset for Northern Ireland corporation tax rate purposes.
• If the business was carried on by the company or any other person before the commencement day, the goodwill is treated as having been created before that day.
• If no one carried on the business before the commencement day, the goodwill is treated as created on or after that day.
• This means that goodwill attached to an established business will almost always be classified as a pre-commencement asset, regardless of when the company acquired it.