Intangible assets: rules for restricted assets

HMRC has published detailed guidance in its Corporate Intangibles Research and Development Manual (at CIRD46000 onwards) on the FA 2020 changes to the corporate intangible fixed assets regime that apply from 1 July 2020, including worked examples on the application of the restricted asset rules.

The first case deals with more straightforward types of transaction that involve a basic transfer. The second case deals with arrangements, such as those involving licences, where a new asset created on or after 1 July 2020 derives its value from a pre-2002 asset or a restricted asset and the third case covers other transactions not within the first two cases, such as sale and licence back arrangements.

Those changes relate to acquisitions of pre-FA 2002 assets made from related parties on or after 1 July 2020.