Intangible rollover relief
You'll learn how intangible rollover relief works for Advanced Taxation (ATX), allowing you to defer tax on profits from selling intangible fixed assets like patents and goodwill by reinvesting into new intangibles within a four-year window.
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In this lesson
- 0:00 Intangible rollover relief introduction
- 0:15 Four year replacement window explained
- 0:45 Calculating maximum deferral amount
- 1:23 Urban Limited patent disposal example
- 2:27 Trading profit calculation walkthrough
- 3:30 Partial reinvestment scenario
About this lesson
This lesson covers the key calculation: identifying the maximum deferral as the lower of proceeds or amount reinvested, reducing it by the cost of the old asset, and understanding how amortisation clawback affects your trading profit. You'll work through a practical example involving patent disposal and goodwill purchase to see how partial reinvestment changes your tax liability, equipping you to handle these relief claims confidently in exam scenarios.
Duration: 4m
Transcript
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