Commentary

B5.308 Capital and revenue transactions

Business tax
Business tax | Commentary

B5.308 Capital and revenue transactions

Business tax | Commentary

B5.308 Capital and revenue transactions

The corporate tax treatment of intangible assets, including intellectual property, acquired or created on or after 1 April 2002 is set out in the corporate intangible regime as detailed in Division D1.6.

The distinction between disposing of intellectual property as a capital asset and turning it to account to produce trading income should be straightforward. The relevance of such a distinction was recognised in British Dyestuffs Corporation (Blackley) Ltd's1. In practice, the exercise is complicated by a number of factors. Firstly, there is the mechanism of exclusive licensing, whereby the owner of rights puts it

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