The intangible fixed assets (IFA) regime has on the whole been good news in terms of the corporation tax treatment of IP. It is a consistent, generally logical set of rules and was, when it was introduced, a big improvement on the myriad tax rules that exist for pre-2002 IP. However, the proposed review of the regime is welcome as there are areas where the rules could be improved. In particular, there are difficulties in applying the group treatment rules to intra-group exclusive licences for fixed sums and the potential for such licences to be taxed under transfer pricing rules; there is an illogical distinction between IFAs and chargeable gains assets created in 2011 when the de-grouping rules were changed; and there are difficulties in applying the rules to partnerships and LLPs.The pre-2002 IP rules should potentially be included within the IFA regime.
