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HMRC internal manual

Corporate Intangibles Research and Development Manual

HM Revenue & Customs
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Intangible assets within CTA09/PART8: asset conditions: meaning of intangible asset: accountancy test

CTA09/PART8/S712 (1)

The term ‘intangible asset’ carries its meaning ‘for accounting purposes’, that is its meaning under ‘GAAP’, terms defined in ICTA88/S832 (1) and FA04/S50 (see CIRD30020).

The practical effect is to import the definition of an intangible asset in the GAAP standards for accounting for goodwill and intangible assets, see CIRD30530.

The status of assets that are not within the definition of ‘intellectual property’ (see CIRD11150) is therefore wholly a matter of accounting practice. Agricultural quota, various types of statutory licences and some franchise rights are all examples of assets of this kind which would normally fall within intangible assets for GAAP and therefore within Part 8.

As to the meaning of ‘fixed’ assets see CIRD11170.

Internally-generated assets

Part 8 of the Corporation Tax Act 2009 was amended by Section 70 of the Finance Act 2009 to confirm that for the purposes of the regime, intangible assets (such as goodwill) include internally-generated assets (such as internally-generated goodwill).

Exception for finance lessors

The requirement that only intangible assets with that status for accounting purposes come within Part 8 is relaxed in the case of finance lessors (see CIRD27050).