Tax Relief Expected In Intellectual Property Shake-Up

by Jason Gorringe, Tax-News.com, London

27 November 2001

In his pre-budget report later today, UK Chancellor Gordon Brown is expected for the first time to afford tax relief to companies buying software licenses, brand names and hi-tech knowhow under a radical new shakeup of the country's intellectual property rules.

According to economists, changes to the intellectual property taxation regime- which as well as more general forms of intellectual property also covers brand names, software development, and telecommunication licences- are necessary in order to ensure that Inland Revenue rules properly reflect the changing structure of the UK economy.

The speculation has been met with cautious enthusiasm by UK business groups, who have already voiced concerns about the complicated nature of the UK taxation system for the corporate sector. Speaking to the Times on Monday, Andy Newsome, a tax partner in the Anderson accountancy firm explained: 'People will welcome this, but it is introducing more complexity.'

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