The United Kingdom has launched a wide-ranging consultation on possible changes to the current regime for taxing corporate intangible fixed assets. The consultation document
notes “the growing importance of intellectual property to the productivity of modern businesses” and highlights some areas where current U.K. taxation policy is not consistent with either IFRS amortization requirements or with other tax regimes found internationally, which may be impacting the U.K.'s competitiveness. The consultation raises the possibility that U.K. tax relief will once more be available for acquired goodwill and other customer-related intangibles and could be extended to intangible assets created prior to April 2002 for the first time and to goodwill attributable businesses commenced by related parties before that date. Comments on the consultation document are due by May 11.
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