In his 2015 Autumn Statement, the Chancellor announced changes to the legislation for the treatment of intangible fixed assets. It clarified that assets acquired or disposed of by a partnership will come within  the existing rules for Goodwill and intangibles where there is a corporate partner.

The measure tackles arrangements that use partnerships or Limited Liability Partnerships (LLPs) to transfer assets in ways that seek to bring the assets within these rules without an effective change of economic ownership.

Where a company is a partner in a partnership, the partnership should calculate its profit along Corporation Tax lines before allocating a profit share to the company. Even though a partnership is not a company, the intangible asset rules will apply to it if it has corporate partners.

The changes took immediate effect:

  • The legislation will apply to debits and credits in accounting periods beginning on or after 25 November 2015.
  • For accounting periods straddling 25 November 2015 debits and credits will be apportioned.


Comments (0)

Rated 0 out of 5 based on 0 voters
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location


Enjoying our content? 

Sign up now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad