A technical note issued by the Inland Revenue gave details of the new tax regime, which will be introduced in the Finance Bill, which follows two years of consultation with the business world.
In his speech, chancellor Gordon Brown said the new regime would ‘meet the needs of a more knowledge based economy.’
The term intellectual property covers such things as brands, customer lists, relationships with suppliers, patents and company names.
Lindsay Dodsworth, a partner at Ernst & Young, said: ‘We welcome the proposals, particularly to allow relief for goodwill, which will make the UK more competitive when it comes to attracting investment, and bring it into line with our major trading partners.’
But she warned that the ‘devil would be in the detail’ of the draft legislation and that transitional rules were likely to be complex.
Report argues that the government must change the way it makes tax and budget decisions
Drastically fewer offices for HMRC in the hope to reduce their running costs
Tayabali Tomlin and d&t directors launch £20 a month TaxGo service, aiming to be the 'biggest UK firm' by client numbers
Companies must report on their complex financial structures including offshore accounts and notify HMRC