Losses on non-trade intangibles

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

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.

Debits and credits relating to IFAs of a property business are treated as part of the expense / income of that property business.

Non-trading debits and credits relating to IFAs are pooled. If the non-trading credits exceed non-trading debits, then there is a non-trading gain on IFAs. This is chargeable

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more

Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more

Owner-Managed Businesses

Capital allowances on cars

Capital allowances on carsSummary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions of 50g/km and below 18%CAA 2001, s 104AASecondhand cars with CO2

14 Jul 2020 11:08 | Produced by Tolley Read more

Losses on non-trade intangibles