This page concerns the initial costs of establishing a market
niche for an intangible asset such as a new product or brand, or a
magazine title.
An asset of this kind is normally developed from scratch
in-house though a concern may sometimes build up acquired
intangibles, for example rights in an invention, or a struggling
magazine title purchased from the previous owner. Assets of this
kind often turn out to be marketable and may change hands for large
sums, normally on capital account.
There is general guidance on the distinction between capital
and revenue expenditure in
BIM35000 onwards.
If a company incurs costs of this type after 31 March 2002,
the expenditure will fall within the intangible assets regime
unless the asset already existed at that date, see
BIM35500 onwards.
Intangible rights or assets located offshore
Where substantial expenditure is incurred on launch costs
that add value to rights or intangible assets held offshore, the
papers should be sent to CT&VAT, International CT, to consider
a challenge under the transfer pricing legislation in ICTA88/S770A
and SCH28AA.
