The term ‘intangible asset’ covers not only intellectual property, such as patents, copyrights, trademarks and know-how, but also a variety of other assets with commercial value such as agricultural quota, payment entitlements under the single payment scheme for farmers, franchises and telecommunication rights. ‘Goodwill’, in accounting terms, is simply the difference between the price a business fetches when it changes hands, and the value of its identifiable (including intangible) assets.
Companies receive a deduction for expenditure on an accounts basis. Allowances at 4% p.a. are available by election.Intellectual Property, Legal Advice, Business Tax