Intangible assets regime for companies

Where a company acquires or sells a franchise, the Corporation Tax intangible assets regime applies. The regime is introduced at BIM35501, and covered more fully in the CIRD manual. Where the intangible assets regime applies then it takes precedence over the guidance here.

Trade profits treatment

The initial payment by the franchisee, whether payable in one sum or instalments, is usually capital, as are any related legal fees. Capital payments are not allowable deductions in computing the taxable profits of a trade. See generally BIM35000 onwards.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.