In his 2015 Autumn Statement the chancellor announced changes to the legislation for the treatment of intangible fixed assets to clarify 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 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.

 

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