If enacted in its current form, clause 32 of the Finance Bill 2015-16 (the 'Bill') will remove corporation tax relief for costs incurred by a company in purchasing goodwill and other closely related assets (such as unregistered trademarks and mailing lists).
Charities often set up a trading company to raise funds by carrying on non-charitable trading activities. So that the trading company can do this, the charity will often grant it rights over its logo (which may be an unregistered trademark) and its mailing list. In order to comply with charity and tax law, these rights will be granted on arm's length commercial terms.
Whilst acknowledging that clause 32 of the Bill will not affect all charity trading companies, the Institute of Chartered Accountants in England and Wales ('ICAEW') has made a representation to the government highlighting that trading companies owned by trustees of a charitable trust or an unincorporated association, or by several charities. The ICAEW considers that all charity trading companies should be entitled to claim corporation tax relief in these circumstances and asks the government to amend the draft legislation accordingly.
The Bill is currently before a Committee of the House of Commons and it waits to be seen whether the representation from the ICAEW will be taken into account.