Tax Relief for Intangible Fixed Assets

Tax Relief for Intangible Fixed Assets

Companies can obtain a corporation tax deduction for certain expenditure incurred on intangible assets... Newly created or purchased intangible assets can attract a corporation tax deduction provided they meet certain conditions. What are intangible assets? The term intangible asset covers not only intellectual property such as patents, trade marks, copyrights and know–how, but also a variety of other assets with commercial value like agricultural quotas. In the case of companies, the accounting standard FRS 10 defines intangible assets as: “non–financial fixed assets that do not have physical substance but are identifiable and controlled by the entity through custody or legal rights”. FRS 10 makes it clear that an intangible asset can be purchased on its own, as pa... »