Anne Fairpo

This Practice Note explains the tax deduction that a company can claim for the amortisation of its expenditure on intangible fixed assets. The tax deduction will generally be the same as any amortisation charge, or deduction following an impairment review, in the company’s accounts. Where no accounting amortisation is available, a company can elect to take a fixed annual tax deduction based on the company’s expenditure on the asset. Produced in partnership with Anne Fairpo, barrister.

This Practice Note addresses a key question for companies in determining their tax treatment with respect to a particular intangible asset, which is whether or not it falls within the intangible fixed assets regime. It explains which assets are wholly excluded from the regime (eg assets held for non-commercial purposes or assets taxed under another regime such as loan relationships and derivative contracts), which assets are excluded except as to royalties (eg assets created or acquired before 1 April 2002) and which assets are excluded to a specified extent (eg assets representing expenditure on research and development). This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note sets out the key features of the corporation tax regime for intangible fixed assets, including relief for expenditure upon, and taxation of receipts from, trading and non-trading intangible fixed assets. Intangible fixed assets are taxed and relieved as income, and relief may be given as expenditure is incurred, on an accounting basis or at a fixed annual rate. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note explains the circumstances in which relief is available from corporation tax when intangible fixed assets are transferred as part of the transfer of a business or trade. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note considers the tax treatment of transactions in intangible assets between related parties within the corporate intangible fixed assets regime. It does not cover transfers between group companies. It looks at the definition of a related party, the key circumstances in which the related party rules apply, and the market value rule. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note explains the various anti-avoidance rules applying in the context of the intangible fixed assets regime, including the mini-GAAR applying to tax avoidance arrangements, the rule on cessation of UK residence, restrictions on the use of losses on change of company ownership and the fungible assets repo rule. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note explains what constitutes qualifying expenditure and how know–how allowances (and any subsequent balancing charges or allowances) are calculated. Certain taxpayers can claim capital allowances in respect of qualifying capital expenditure on know-how. These allowances are principally available to individuals and other unincorporated entities for new acquisitions. Companies are only able to claim know–how allowances for intangibles fixed assets where the corporate intangibles tax regime does not apply. This Practice Note was produced in partnership with Anne Fairpo, barrister.

ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note describes the large company R&D relief, which was available until 1 April 2016 by way of an additional (30%) deduction in computing corporation tax profits. Alternatively, large companies could have claimed the R&D expenditure credit (which replaced the additional deduction from 1 April 2016).The note explains the meaning of large company and qualifying expenditure and considers the rules on expenditure on sub-contracted R&D. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note explains what constitutes qualifying expenditure and how patent allowances (and any subsequent balancing charges or allowances) are calculated. Certain taxpayers can claim capital allowances in respect of patents. These allowances, which provide a deduction for capital expenditure, are principally available to individuals and other unincorporated entities for new acquisitions. Companies are only able to claim patent allowances for intangibles fixed assets in specific circumstances. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note explains the patent box streaming rules that a company may elect to use (and in some circumstance, be required to use) in calculating its profits eligible for relief under the patent box rules. It covers the grandfathered rules and also the rules that apply to new entrants and new intellectual property since July 2016. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note explains what a company can do with a relevant IP loss (RIPL). A company in the early stages of IP developments may have a RIPL rather than relevant IP profits, as a result of its patent box calculation and will not benefit from patent box relief. Instead, the company must set off the RIPL against other of its, or its group’s, profits for the current or future accounting periods. This Practice Note was produced in partnership with David O'Keeffe of Aiglon Consulting.

This Practice Note explains how to carry out a standard (non-streamed) calculation of a company’s profits eligible for relief under the grandfathered patent box rules. The calculation involves six or seven steps, including calculating relevant IP income (RIPI), calculating relevant IP profits, deducting a routine return to produce qualifying residual profit and finally deducting a marketing assets return.

This Practice Note sets out the key features of the patent box regime, an elective regime providing for an effective 10% rate of corporation tax on worldwide profits attributable to qualifying patents and similar intellectual property rights. It considers the meaning of qualifying IP rights; the development condition; a qualifying company; an exclusive licence; and a group. It covers elections and how the regime applies to partnerships and cost-sharing arrangements. This Practice Note was produced in partnership with David O'Keeffe of Aiglon Consulting.

This Practice Note sets out the circumstances in which roll-over relief will be available to companies (or groups of companies) under the intangible fixed assets (IFA) regime to defer the tax charge on gains on realisation of intangible fixed assets (including certain realisations of pre-1 April 2002 intangible fixed assets). The rules are similar, but not identical, to the roll-over relief rules for capital gains of companies. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note explains how money raised as a result of assigning (transferring) or licensing IP is taxed in the UK. It explains the potential tax reliefs available, as well as how transfers within a group of companies are treated, withholding tax in the context of cross-border licensing, and the UK patent box tax incentive for assigning and licensing IP. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Practice Note examines the tax consequences and available exemptions where intellectual property (IP) is transferred in corporate transactions either through the sale of shares in a company holding the IP or as part of the sale of the trade and assets of a business. It also briefly considers the situation regarding VAT on the sale of IP assets.

This Practice Note explains that a transfer of an intangible fixed asset from one group company to another is treated as tax-neutral. There is no realisation of the intangible fixed asset by the transferor and the transferee ‘steps into the shoes’ of the transferor with regard to original expenditure on and subsequent amortisation of the asset. A degrouping charge may arise where the transferee company ceases to be a member of the group within six years. Produced in partnership with Anne Fairpo, barrister.

This Practice Note sets out the UK tax considerations for an innovative business with global ambition when developing and acquiring IP. Specifically, it focuses upon the intangible fixed assets regime, R&D reliefs and the UK patent box. This Practice Note was produced in partnership with Anne Fairpo, barrister.

This Precedent letter can be used by members of a group of companies to make a joint election to reallocate the whole or part of a degrouping charge (but not a degrouping loss) in respect of intangible fixed assets from one group company to one or more other group companies. Such election must be made within two years of the end of the accounting period in which the degrouping charge arises.