Intangible Assets - Intellectual Property (IP) – Tax Relief
The Finance Act 2009 introduced tax relief for capital expenditure incurred by companies on a broad range of Intangible Assets. The new provision is effective for expenditure incurred after 7th May 2009.
The range of assets qualifying for relief is extensive and includes brands, trademarks, copyrights, publishing rights and patents.
A full list of the intangible assets qualifying for relief is set out in below.
Specified intangible assets
· Any patent, registered design, design right or invention.
· Any trade mark, trade name, trade dress, brand, brand name, domain name, service mark or publishing title.
· Any copyright or related right within the meaning of the Copyright and Related Rights Act 2000.
· Certain supplementary protection certificates for medicinal products.
· Certain supplementary protection certificates for plant protection products.
· Certain plant breeders’ rights.
· Know-how, generally related to manufacturing or processing.
· Any authorisation required in order to sell a medicine or product of any design, formula, process or invention for the purpose it was intended.
· Any rights derived from research, prior to authorisation, on the effects or items covered directly above.
· Any licences in respect of an intangible asset referred to above.
· Any ‘non-Irish’ rights similar to those outlined above.
· Goodwill to the extent that it is directly attributable to the items set out above.
How it works
Companies carrying on a trade will be entitled to claim a tax write-off for the capital cost of acquiring or developing qualifying intangible assets. For the purpose of the relief, qualifying intangible assets will be referred to as specified intangible assets.
Where a specific intangible asset is amortised or depreciated for accounting purposes, the tax write off will be available in line with the accounting write-off.
For further information please contact your professional adviser.
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