An intangible fixed asset's definition under UK tax and accounting rules

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Practice notes

An intangible fixed asset's definition under UK tax and accounting rules

Published by a ��˾��ҹ�� Tax expert

Practice notes

Part 8 of the Corporation Tax Act 2009 (CTA 2009) is a specific corporation tax regime that applies exclusively to the gains and losses of intangible fixed assets. Note, however, that certain intangible fixed assets are excluded from the regime, see Practice Note: Excluded intangible fixed assets.

Tax definition of intangible fixed asset

An intangible fixed asset is an intangible asset created or acquired by a company for use on a continuing basis in the course of the company’s activities.

As the asset must be used on a continuing basis, this will exclude intangible assets that are bought and sold by a company as trading stock (for example, a company dealing in media rights).

The definition includes any option (or similar right) to:

•
acquire an intangible asset that would be a fixed asset if it were acquired, or
•
dispose of a fixed asset

Such options and similar rights are excluded from the tax provisions governing derivative contracts.

There are specific exclusions from the definition of an intangible fixed asset and therefore from Part 8

Jurisdiction(s):

United Kingdom

Key definition:

Fixed assets definition

What does Fixed assets mean?

Assets of a company such as buildings and machinery which are regularly used over a long period of time for the purpose of generating profits.

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