Corporate intangibles tax regime ― overview

Produced by Tolley in association with Anne Fairpo

The following Corporation Tax guidance note Produced by Tolley in association with Anne Fairpo provides comprehensive and up to date tax information covering:

  • Corporate intangibles tax regime ― overview
  • Summary of corporate intangible regime
  • Date of acquisition or creation
  • Which assets fall within the corporate intangibles regime?
  • Which assets do not fall within the corporate intangibles regime?

For companies, the taxation of intangible fixed assets acquired or created after 1 April 2002 is governed by CTA 2009, ss 711–906 (Part 8). The corporate tax treatment essentially follows the treatment of intangibles in the accounts. There are however restrictions on the deductibility of debits in relation to goodwill and other customer-related intangible assets depending on the date of acquisition or creation, see the Goodwill and other customer-related intangible assets guidance note.

Prior to Finance Act 2002, there was no harmonised regime dealing with the taxation of corporate intangibles ― this continues to be the case for most ‘old’ corporate intangibles.

The corporate intangibles regime has gone through a number of iterations since its introduction in April 2002, particularly in relation to goodwill and other customer-related intangible assets. The rules were amended again for acquisitions made on or after 1 July 2020. From this date, the scope of the corporate intangibles regime was extended to include assets:

  1. acquired by a company on or after 1 July 2020, even if the intangible asset was acquired from a related party

  2. brought within the UK corporation tax net on or after 1 July 2020, where that asset was held by a company immediately before 1 July 2020 and the asset was not chargeable to UK corporation tax (an example being a non-UK resident company that migrates to the UK holding an intangible asset or where such a company allocates an intangible fixed asset to its UK permanent establishment on or after 1 July 2020)

CTA 2009, s 882(1C), (1D)

At first glance, the amendments to the rules for related party acquisitions appear to represent a significant relaxation and simplification of the regime that existed prior to 1 July 2020. In practice, various anti-avoidance and transitional rules mean that while the assets will be brought within the corporate intangibles regime, amortisation and impairment relief will be restricted. In addition, transfers made between UK companies within the same capital gai

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