BIM35500 | Capital/revenue divide: intangible assets: contents

In his classic definition, Lord Cave referred to an asset or advantage of an enduring benefit (see BIM35010). Businesses spend money on acquiring tangible assets like machines and business premises, but they may also acquire intangible assets or advantages of other kinds. The latter types of assets may take the form of various kinds of intellectual property, or leases and other interests over land but equally they may be less well defined, like the disappearance of a competitor from the market. Where the intangible asset or advantage has sufficient quality of endurance the expenditure involved will be capital.

The guidance that follows describes a number of cases involving intangible assets that have come before the courts.