UK plc welcomes IP reforms
Plans for a new regime to provide relief for the costs of intellectual property, goodwill and intangible assets have been met with open arms by knowledge-based companies.
John Slater, managing partner at Marks & Clerk, the UK’s largest firm of patent and trade mark attorneys, said: ‘The proposed relief for companies investing in intellectual property will provide a welcome shot in the arm for British business.’
Intellectual property is gaining in profile, and more and more organisations are recognising its value to their business. The proposed changes to the tax system will spur innovation and invention, and reflect more accurately the increased emphasis on knowledge-based assets in the UK economy.
‘In future mergers and acquisitions, this measure will put investment in intellectual property on an equal footing with investment in other business assets.’
Following consultation the government plans to introduce these measures from April 2002. Draft legislation for the new regime, together with a commentary and a partial Regulatory Impact Assessment, has been placed in the House of Commons, according to a release from the Treasury this afternoon.
The government is proposing to cover the costs of acquiring intangible assets where no relief had previously been available and ensuring that relief for future acquisitions will be given on a consistent basis, following, as far as possible, the amortisation reflected in companies’ accounts.