17 July 2020

Armstrong & Haire Limited v HMRC; (FTT)

The appeal concerned the application of the intangible fixed assets regime in Part 8 CTA 2009. The taxpayer company claimed a deduction in relation to the amortisation of the goodwill recognised on the acquisition in 2010 of two dental practices (which had commenced in 1996). The main issue was whether the goodwill was treated as created after 1 April 2002 because the “business in question” commenced after that date. The Tribunal held that the “business in question” was the business being acquired and not the business carried on by the company and, consequently, the businesses had commenced prior to 2002. In addition, the Tribunal held that the conditions for issuing a discovery assessment were met and the assessment was not ‘stale’.

Ben Elliott, Counsel for the Appellant.

To see the approved decision, click here.