This is a basic guide and should not be used as definitive guides, since individual circumstances may vary; specific advice should be obtained, where necessary.
The Finance Act 2002 changed the treatment of goodwill amortised by companies. It does not apply to goodwill acquired prior to 1 April 2002 which continues to be treated within the capital gains regime, neither does it apply to internally-generated goodwill.
Changes to time limits for tax claims and assessment
As part of HMRC's new compliance regime, the time limits for making tax claims (eg error or mistake claims) and raising assessments have been aligned IT, CGT, CT, VAT, PAYE and NIC.
All entities that are sent a notice to deliver a corporation tax return are required to file that return online. Also, any organisation that is within the charge to corporation tax must pay that tax (and any related payments, such as interest on tax paid late) electronically.
A new system of penalties for errors and omissions on tax returns has been introduced by HM Revenue & Customs (HMRC). Although the penalties themselves won’t be levied until after 1 April 2009, you need to act now to help your clients get organised and avoid a potential penalty.
After lengthy discussions between HMRC and the accountancy profession it has been agreed that s.35 FA 2008 will apply to corporation tax periods after 1 April 2008. For periods before 1 April the law as it previously stood should apply.
HMRC has commented that despite concerns expressed in a number of enquiries, the guidance in Statement of Practice (04/07) still reflects its continued position on Advance Thin Capitalisation Agreements (ATCAs).
