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Deductions denied where intangible fixed assets acquired from partnership’s corporate members

By Mark McLaughlin, June 2026

Corporate members of a limited liability partnership were not entitled to claim deductions regarding intangible fixed assets acquired by the partnership from those corporate members due to the related party rules for intangible fixed assets purposes. 

The second, third and fourth appellant companies owned all the membership units in the first appellant (a limited liability partnership (LLP)). On 1 July 2013, the corporate members transferred their respective trades (which they had previously carried on separately)together with certain assets to the LLP in return for membership units in the LLP. The assets transferred included various brands, licences and software, together with goodwill. Those assets fell within the definition of intangible fixed assets (IFAs) in CTA 2009, s 712, and the goodwill;

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