CIRD11010 - Intangible assets within CTA09/PART8: asset conditions: introduction
Conditions to be satisfied
To come within Part 8 goodwill or another intangible asset must satisfy both the following requirements:
- it must satisfy the asset conditions
- it must not be a pre-FA 2002 asset (the ‘FA02 rule’)
The asset conditions are considered in detail in CIRD11030 onwards. In summary, an asset must be goodwill or an intangible fixed asset for accountancy purposes and not within statutory exceptions largely intended to preserve the existing treatment of certain assets.
The FA02 rule is explained in CIRD11500 onwards. In broad outline, the company holding an asset must either have created it on or after 1 April 2002 or else have acquired it, directly or indirectly, from an unrelated party after that date. Different rules apply to related party acquisitions on or after 1 July 2020 (see CIRD11500 onwards).
Royalties, whether paid or received, in respect of an intangible asset usually fall within Part 8 even though the asset fails to satisfy these requirements, see CIRD11705.
See CIRD12000 onwards for the computational rules that apply to assets within Part 8.
Terminology
As in the legislation itself, references to intangible assets in the part of this manual dealing with the rules in Part 8 should be read as including goodwill except where it is clear from the context that is not the case.