Tax definition of intangible fixed asset

An intangible fixed asset is an intangible asset created or acquired by a company for use on a continuing basis in the course of the company’s activities.

As the asset must be used on a continuing basis, this will exclude intangible assets that are bought and sold by a company as trading stock (for example, a company dealing in media rights).

The definition includes any option (or similar right) to:

1. •

   acquire an intangible asset that would be a fixed asset if it were acquired, or

2. •

   dispose of a fixed asset

Such options and similar rights are excluded from the tax provisions governing derivative contracts.

There are specific exclusions from the definition of an intangible fixed asset and therefore from Part 8