Intangible assets within CTA09/PART8: FA02 rule exceptions: royalties: definition of royalties
A royalty within Part 8 is simply a royalty in respect of the enjoyment or exercise of rights that constitute an intangible fixed asset.
The term ‘royalty’ is not further defined and therefore takes its ordinary meaning. Payments or receipts of a capital nature on general tax principles should not be regarded as royalties.
In the context of royalties an ‘intangible fixed asset’ is one which:
- satisfies the positive requirements CIRD11100
- does not fall within any of the exclusions in CIRD25025 to CIRD25060 (assets outside the scope of FRS10)
Royalties are therefore within this definition even if they are in respect of intangible fixed assets which: