What is an intangible fixed assets group?
Produced in partnership with Anne Fairpo of Temple Tax Chambers
What is an intangible fixed assets group?

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

  • What is an intangible fixed assets group?
  • Groups of companies
  • Definition of a group
  • Restrictions on types of members
  • 75% subsidiary
  • Example
  • 51% subsidiary
  • Example
  • Equity holder
  • Principal company
  • More...

What is an intangible fixed assets group?

Groups of companies

A number of reliefs in respect of intangible fixed assets depend on membership of a group. For example, where there is a disposal of an intellectual property asset by one group member to another, the transfer will be treated as tax-neutral.

There may also be corresponding tax charges when a company leaves a group. It is therefore often important to be able to determine whether a company is or has been a member of a group.

Definition of a group

The corporate intangible fixed assets tax regime (the IFA regime) is self-contained in the Corporation Tax Act 2009, Part 8 and maintains its own definition of a group. In practice this definition follows the definition for capital gains purposes.

The general rule is that a group is defined as the principal company and its 75% subsidiary companies, together with the 75% subsidiary companies of those subsidiaries and so on, provided always that the group members are restricted to those which are ‘effective 51% subsidiaries’ of the principal company.

Restrictions on types of members

Each group member is referred to as a company and must be:

  1. a company (wherever incorporated), including one constituted by a Royal Charter

  2. a registered industrial and provident society

  3. an incorporated friendly society

  4. a building society, or

  5. one of certain statutory bodies set up to run an industry

A

Related documents:

Popular documents