Fixed assets Definition

GLOSSARY

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What does Fixed assets mean?

Assets of a company such as buildings and machinery which are regularly used over a long period of time for the purpose of generating profits.

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Corporation tax loss relief—comparative table

Corporation tax loss relief—comparative table The table below provides a high-level summary of the different ways in which a company can obtain relief for certain corporation tax losses. Relief for corporation tax losses is in all cases limited by certain conditions, exclusions and anti-avoidance rules. These are discussed in more detail in the Practice Notes referred to in the table. The rules applicable to corporate carried-forward income losses was significantly amended with effect from 1 April 2017. The changes introduced: • a loss relaxation—this allows most carried-forward income losses arising from 1 April 2017 to be used more flexibly against the total taxable profits, rather than particular types of profits, of a company and to be surrendered as group relief, and • a corporate income loss restriction (CILR)—this imposes a limit, of broadly 50%, on the amount of total profits arising on or after 1 April 2017 that can be relieved by carried-forward income losses. The loss restriction applies to both post-1 April 2017 losses and pre-1 April 2017 losses A similar...

Questions relevant for an asset sale—tax issues—checklist

Questions relevant for an asset sale—tax issues—checklist This Checklist sets out a list of questions that may be relevant to determining the tax implications of an asset sale. This Checklist should be used in conjunction with Practice Note: Key tax considerations in an asset sale. For more information on pre-contract enquiries, see also Practice Notes: Capital allowances on property sales—pre-contract enquiries and Commercial Property Standard Enquiries—CPSE (the CPSEs, prepared by members of the London Property Support Lawyers Group and endorsed by the British Property Federation, provide standard questions relevant to a sale of commercial real estate). Key tax considerations in an asset sale Questions Answers obtained by the adviser General questions Are the parties companies, individuals or other types of entities, such as a partnership, trust or charity? Are there multiple sellers? Are there multiple buyers? Does the seller own legal and beneficial title to the assets? Will the buyer acquire both the legal and beneficial title to the assets at actual completion? ...

Checklist of tax questions to ask the joint venture counterparty

Checklist of tax questions to ask the joint venture counterparty This Checklist sets out a list of key tax questions to ask a counterparty to a joint venture. The aim of the list is to determine the principal UK tax issues that may arise for the remaining joint venture party/parties and/or any joint venture vehicle. These potential issues are highlighted in the list. The checklist assumes that the parties are UK tax resident corporate entities and that any joint venture vehicle will also be UK tax resident. The following Practice Notes provide further details of the UK tax issues highlighted in this checklist: • Tax implications of contractual joint ventures • Tax implications of establishing a joint venture partnership • Tax implications of operating and terminating a joint venture partnership • Tax implications of establishing a joint venture company • Tax implications of operating and terminating a joint venture company • Tax implications of international joint ventures • Transfer pricing and joint ventures, and • Tax influences on choice of...

Tax influences on choice of business vehicle

Tax influences on choice of business vehicle When one or more individuals decide to start a business, they have a choice as to what vehicle they operate that business through. In addition to the commercial and legal reasons for that choice (see Practice Note: Forms of business vehicle), the tax treatment of each different form of vehicle will often be a decisive factor in whether it is appropriate for carrying on a particular business. A summary of the tax implications of running a business as: • a sole trader • a general partnership • a limited partnership • a limited liability partnership, and • a company are dealt with in Practice Note: Forms of business vehicle—tax summary and Choice of business vehicle—tax comparison table. This Practice Note draws together some of the main tax considerations that influence the decision of a person or people considering the choice of business vehicle. As a result it does not consider any anti-avoidance principles that might apply in some circumstances, such as...

Discover our 146 Practice Notes on Fixed assets

Memorandum on the responsibilities and obligations of a director of an AIM company

Memorandum on the responsibilities and obligations of a director of an AIM company 1 Introduction 1.1 This memorandum has been prepared for the directors and proposed directors (the Directors) of the Company to provide a general introduction to the principal responsibilities and obligations of a director of a company whose shares are admitted, or will be admitted, to AIM, a market operated by London Stock Exchange plc (LSE). 1.2 Once a company’s securities are admitted to trading on AIM, a company and its directors are subject to an increased layer of regulation. This includes requirements set out in the AIM Rules for Companies published by the LSE (AIM Rules), the Disclosure Guidance and Transparency Rules sourcebook (DTRs), the Prospectus Rules and the Market Abuse Regulation. 1.3 As a Director, you will be responsible (individually and collectively with your fellow Directors) for the Company's compliance with these provisions. The LSE has the power to fine or publicly censure an AIM company in the case of a...

Election under CTA 2009, s 792 to reallocate intangible fixed asset degrouping charge to another member of a group

Election under CTA 2009, s 792 to reallocate intangible fixed asset degrouping charge to another member of a group [Letterhead] [Addressed to HMRC Officer] [Date] We hereby jointly elect pursuant to section 792 of the Corporation Tax Act 2009 (CTA 2009) for [the whole OR [insert a specific amount, a percentage or a fraction]] of the chargeable realisation gain accruing on the deemed realisation and reacquisition of the intangible assets to be treated as accruing to [full company name] (Company B) rather than [full company name] (Company A). For the purpose of this notice: intangible assets • means [details]; deemed realisation and reacquisition • means the deemed realisation and reacquisition of the intangible assets pursuant to section [780 OR 785] of CTA 2009 in consequence of [insert details of event leading to Company A leaving the group, eg sale of shares pursuant to a share purchase agreement between X and Y dated [insert date]]; relevant group • means, in accordance with section [792(3)(a) OR 792(4)(a)] of...

Dive into our 25 Precedents related to Fixed assets

What is the type and extent of due diligence required in an AIM or Main Market IPO and how long does it take to complete?

What is the type and extent of due diligence required in an AIM or Main Market IPO and how long does it take to complete? Written in partnership with Daniel Simons (Partner, Hogan Lovells International LLP) and Melissa Ratchev (Associate, Hogan Lovells International LLP). This Q&A considers the nature and extent of due diligence required in an AIM or Main Market Initial Public Offering (IPO) and how long such due diligence takes to complete. Why carry out due diligence on an applicant pursuing an AIM or Main Market IPO? The due diligence exercise is a critical part of the IPO process. It requires a full investigation by the company and its advisers into the company's business, finances, prospects and risks in order to provide the necessary information in the offering document (that is, a prospectus where there is an offer to the public or for an admission of securities to trading on the Main Market, or an admission document for an admission of securities to trading...

Will a disposal of internally generated goodwill upon the sale of a business be taxed as a capital gain or as trading profit? The business began trading in 2007 and the goodwill has a value attributed to it.

Will a disposal of internally generated goodwill upon the sale of a business be taxed as a capital gain or as trading profit? The business began trading in 2007 and the goodwill has a value attributed to it. Part 8 of the Corporation Tax Act 2009 (CTA 2009) is a specific corporation tax regime that applies exclusively to the gains and losses of intangible fixed assets (IFAs). An IFA is an intangible asset created or acquired by a company for use on a continuing basis in the course of the company’s activities. The IFA regime also covers goodwill, specifically including internally generated goodwill unless this was created by a business that was carried on before April 2002. The Finance Act 2015, Finance (No 2) Act 2015 and Finance Act 2019 introduced restrictions on the availability of certain debits under the IFA regime for goodwill created or acquired on or after 3 December 2014, but these restrictions do not apply to goodwill created or acquired before that date....

See the 3 Q&As about Fixed assets

Autumn Budget 2024—What did we learn from the government’s UK Corporate Tax Roadmap?

Tax analysis: Naomi Lawton, Knowledge Counsel at A&O Shearman examines the government’s Corporate Tax Roadmap as announced at the Autumn Budget 2024 including its practical implications.

Tax weekly highlights—7 November 2024

This week's edition of Tax weekly highlights includes: (1) the publication of Finance Bill 2024–25, (2) a reminder of our full Autumn Budget 2024 coverage and related news, (3) case analysis of the FTT’s decision in Collins Construction Ltd concerning the restriction on subsidised expenditure under the pre-April 2024 R&D tax relief rules for SMEs, and (4) analysis of the FTT’s decision in Murphy concerning an SDLT sub-sale avoidance scheme.

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