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.
Taxman lines up early exit from doomed Concentrix tax credits deal, as HMRC faces intense scrutiny from MPs
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said