Intangible fixed assets on the transfer of a trade
Produced in partnership with Anne Fairpo of Temple Tax Chambers
Intangible fixed assets on the transfer of a trade

The following Tax guidance note Produced in partnership with Anne Fairpo of Temple Tax Chambers provides comprehensive and up to date legal information covering:

  • Intangible fixed assets on the transfer of a trade
  • Genuine commercial purpose
  • Company reconstructions
  • Cross-border transfers of business
  • EU mergers
  • Other transfers

Brexit: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This includes interpreting legislation relating to the EU as though the EU still included the UK and has an impact on this Practice Note. For further guidance, see Practice Note: Brexit—UK tax consequences.

The corporate intangibles tax rules contain a number of provisions for relief from tax on the transfer of a business or trade.

Genuine commercial purpose

These reliefs require the transfer:

  1. to be made for genuine commercial reasons, and

  2. not to form part of a scheme or arrangements a main purpose of which is to avoid tax

The genuine commercial purposes test will be met where the taxpayer:

  1. applies for clearance before the transfer, and

  2. has obtained confirmation from HM Revenue & Customs (HMRC) that it accepts that the transfer is for genuine commercial reasons

The clearance should be requested in good time, as HMRC have 30 days to respond to the application, but may respond by requesting further information. They have a further 30 days from receiving that further information to provide their decision.

It is not a requirement of the relief that the application be made and confirmation