The following Tax practice note Produced in partnership with Anne Fairpo of Temple Tax Chambers provides comprehensive and up to date legal information covering:
Where a company acquires (or otherwise incurs capitalised expenditure upon) an intangible fixed asset that falls within the corporate intangible fixed asset regime (IFA regime):
no capital allowances are available in respect of that intangible fixed asset (since the IFA regime is an exclusive regime), but
the company will be able to claim a tax deduction for amortisation of the intangible fixed asset
The amount of the tax deduction will generally be the accounts amortisation but where there is no amortisation in the accounts, where certain reliefs are available or where the company elects for a fixed rate deduction the amount recognised for tax purposes may vary from the accounts.
Where expenditure is incurred by a company on acquiring an intangible fixed asset within the IFA regime that has an enduring benefit for the business, the expenditure will be capitalised in the company’s balance sheet.
Where accounting standards allow, the capitalised expenditure will be written down to the profit and loss account over a period of time through amortisation. That period of time is the useful economic life of the asset, estimated on acquisition.
For example, if a company acquires a patent for £100,000 with a useful economic life of 20 years, it will be entitled to a deduction
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
The Financial Conduct Authority Handbook (FCA Handbook) includes sourcebooks to regulate the conduct of business by a regulated firm relevant to insurers: the Conduct of Business Sourcebook (COBS) and the Insurance Conduct of Business Sourcebook (ICOBS). This Practice Note considers how these
Broadly, the doctrine of overreaching enables purchasers (which includes tenants and mortgagees) in good faith for money or money’s worth to rely solely on the legal title. In the case of registered land, this means the entries entered on the register of title, as it records ownership of the legal
What is quia timet relief?Injunctions are generally awarded where a party has already suffered a wrong. For guidance on injunctions generally, see Practice Note: Injunctions—guiding principles. However, an injunction may be sought before a party's rights have been infringed on the basis that they
This Practice Note provides guidance on the interpretation and application of the relevant provisions of the CPR. Depending on the court in which your matter is proceeding, you may also need to be mindful of additional provisions—see further below.Note: this Practice Note does not deal with the
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.