What has changed
You can now get relief on purchases made on or after 1 April 2019 if the:
- goodwill and relevant assets are purchased when you buy a business with qualifying intellectual property (IP)
- business is liable to Corporation Tax
- relevant assets (including goodwill) are included in the company accounts
Find a full definition of goodwill and relevant assets on GOV.UK in the Corporate Intangibles Research and Development Manual CIRD44060.
Relief you can get
Relief is a fixed rate of 6.5% a year on the lower of the cost of the relevant asset or 6 times the cost of any qualifying IP assets in the business purchased.
Relief is given yearly until the limit is reached. More information about how to work out the relief can be found on GOV.UK in the Corporate Intangibles Research and Development Manual CIRD44093.
How to claim
You must complete a Company Tax Return and include the relief. This will reduce both:
- your company or organisation’s taxable profit
- the amount of Corporation Tax you have to pay