The scheme of capital allowances for expenditure incurred on intangible assets was introduced in Finance Act 2009 and provided for under section 291A TCA 1997. Revenue published Tax Briefing Issue 09 which sets out the main features of the scheme and outlines the subsequent amendments made in Finance Act 2010. It also includes comprehensive FAQs.

Companies incurring capital expenditure, on the provision of intangible assets, for the purpose of the trade, can claim capital allowances under section 291A TCA 1997. The allowance is based on the amount charged to the company's profit and loss account or income statement in respect of the amortisation and any impairment of the specified intangible asset. Tax Briefing Issue 09 sets out the amendments made to this scheme by section 43 Finance Act 2010; among these include:

• A reduction in the qualifying holding period from 15 years to 10 years
• Extension of the list of specified intangible assets to include applications for patents, copyright etc.
• Broadening of the definition of know-how
• Clarification that the scheme applies to expen–diture incurred prior to commencement of a trade

Tax Briefing Issue 09 also provides comprehensive FAQs which deals with questions raised on the scheme such as:

• What are qualifying assets
• Treatment of goodwill
• Advance Revenue opinions
• Computation of accounts based allowance
• Connected party acquisitions

Further details on the amendments made in Finance Act 2010 and the full list of FAQs are set out in Tax Briefing Issue 09, which can be accessed at http://www.revenue.ie