Losses on non-trade intangibles

Debits arising in the accounts of the company in relation to intangible assets are, as a basic rule, treated as being allowable debits in the period in which they are charged. There are, however, restrictions on the allowable debits where the asset is goodwill or a customer-related intangible depending on the date of acquisition or creation. For more details, see the Goodwill and other customer-related intangible assets guidance note.

The tax treatment of debits and credits relating to intangible fixed assets (IFAs) is different depending on whether they relate to an asset used in a trade, a property business or for non-trading purposes.

Trading debits and credits relating to IFAs form part of trade profits as they are accrued to the profit and loss account.