Intangible assets: Restrictions for goodwill and relevant assets: No business or no qualifying IP acquired
CTA09/S879I restricts debit relief in relation to acquisitions of relevant assets that are either
- not acquired as part of business acquisition (CTA09/S879I(1), or
- acquired as part of a business acquisition but that acquisition does not include any qualifying IP.
CT09/S879I broadly replicates the restriction that previously existed in CTA09/S816A.
Note that, in order to be taken into account, qualifying IP must be acquired for use on a continuing basis in the course of the business (so that it is an “intangible fixed asset” in relation to the acquiring company). If, therefore, a company doesn’t intend to use it, that IP cannot be qualifying IP. See CIRD11170 for the definition of intangible fixed asset.