Trade marks are assets and, in some instances, highly valuable ones. This means that dealings in trade marks - both outright assignments and licences - may involve the valuation of the rights concerned plus the payment of substantial sums of money for the transfer or granting of rights.

As is the case with tangible assets, the ownership, disposal and licensing of IP rights all have potential tax implications. When one is transferring or licensing trade marks, the tax consequences of the proposed transaction should be carefully considered.

In relation to corporation tax, a new regime was introduced in April 2002 with the aim of simplifying the tax treatment of intangible assets held, or disposed of, by companies. The tax treatment of intangible assets held, or disposed of, by individuals has not changed. The new regime, which is set out in Schedule 29 to the Finance Act 2002, applies specifically to intellectual property such as trade marks. Schedule 29 has been replaced by Part 8 of the Corporation Tax Act 2009 for accounting periods ending on or after 1 April 2009. The Corporation Tax Act 2009 has not changed the substantive law on intangibles but has merely rewritten the relevant provisions.

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