Intangible fixed assets regime made more competitive and manageable
The government has revisited the intangible fixed assets regime by announcing targeted relief for the cost of goodwill (the amount paid for a business that exceeds the fair value of its individual assets and liabilities) in the acquisition of businesses with eligible intellectual property. The relief will apply from April 2019.
In early 2018, the government reviewed how the tax treatment of acquired intangible assets could be made more competitive and manageable. Following a short consultation, it announced targeted relief for goodwill.
In addition, with effect from 7 November 2018, the government will reform the de-grouping charge rules, which apply when a group sells a company that owns intangibles, so they are more closely aligned with the equivalent rules elsewhere in the tax code.