Get the best outcome for your client.
Intangible property is often glossed over in terms of the taxation considerations. This is because it is often an ancillary component of a wider business sale or purchase package and therefore not dealt with on its own.
We will work through the variety of business assets that make up the category of intangible property. Under the purchase price allocation rules, from the perspective of a vendor allocating a value to these items, the rules surrounding intangible property will continue to be a more important consideration. Equally from a purchaser’s perspective, challenging that value may also become an important factor in a negotiation.
There are two key elements to the importance of intangible property in this equation. The first is that intangible property might be a second class of property, meaning the rules must be applied. Secondly, the allocation of that value becomes important when determining value between the various asset components. There is often an emphasis on placing value on fixed assets, for example, for depreciation recovery. A similar consideration will now need to be given to intangible property which, if depreciated or amortised, will have similar outcomes or considerations.
This course aims to give you the knowledge and understanding of intangible property and its various components and how the purchase price allocation rules will make a difference when completing a business negotiation and sale. This will arm you with the ability to get the best outcome for your client when you are assisting in a business sale package and a breakdown of the components.
24 November 2022
Upon satisfactory completion of this activity you will be able to:
Nolar Crafar, Senior Taxation Manager, Findex
1.25 CPD Hours