TaxPersonal TaxTax relief on intellectual property unveiled

Tax relief on intellectual property unveiled

Businesses are to get tax relief for purchased goodwill and other intangible assets under changes published on Budget day which will bring the UK into line with its European trading partners and the US.

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.

Related Articles

Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

1m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

3m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

5m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

6m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

6m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

8m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

9m Emma Smith, Managing Editor