Tax

Schedule 29 to the Finance Act 2002 applied to goodwill as it applied to an intangible fixed asset. Goodwill in Sch 29 had the same meaning as it had for accounting purposes. Intangible fixed asset was defined by para 2(1) of Sch 29 in relation to a company but not in relation to a partnership or LLP. Entitlement to relief under Sch 29 to the 2002 Act was dependent on the expenditure being reflected in the accounts of the company claiming entitlement to relief. The accounts had to be drawn up in compliance with UK GAAP. Relief under Pt 2 of Sch 29 was given by reference to expenditure written off or written down for accounting purposes. If accounting rules or practice did not permit the expenditure on acquiring an interest in an LLP to be treated as the acquisition of the LLP’s intangible fixed assets included then s 118ZA of the Income and Corporation Taxes Act 1988 did not change the accounting rules or