This paper is based on a practical case study to show how the consolidation provisions apply to set the tax cost of assets for acquisitions under the rules that apply from 2011.
Some of the issues the case study focus on include:
- treatment of non-CGT assets such as customer relationships
- treatment of rights to future income (RTFI) assets
- implications for amounts that are allocated to goodwill
- treatment of accounting liabilities and the related interaction of the consolidation and TOFA regimes.