CT600 Box 195: Non-Trading Gains on Intangible Assets
Box 195 on the CT600 is for non-trading gains on intangible fixed assets. This is a specialist box that applies to specific situations involving intellectual property and similar assets.
What Goes in Box 195?
Box 195 captures gains on intangible assets that arise outside of a trade. This includes gains on:
- Patents (not held for trading)
- Trademarks
- Copyrights
- Goodwill (in certain cases)
- Licences and other intangible rights
Understanding Intangible Assets
What Are Intangible Assets?
Intangible fixed assets are non-physical assets with value:
| Asset Type | Examples |
|---|---|
| Intellectual property | Patents, copyrights, trademarks |
| Goodwill | Value of business reputation |
| Licences | Rights to use something |
| Know-how | Technical knowledge |
| Customer relationships | Acquired customer bases |
Trading vs Non-Trading
The gain is non-trading if the intangible asset is:
- Not held for trading purposes
- An investment asset
- Not part of the company's main business
When Box 195 Applies
Box 195 is relevant when your company:
Sells an Intangible Asset
If you sell intellectual property not used in your trade:
- Calculate gain (proceeds minus cost)
- Enter gain in Box 195
- This is then included in profits
Receives Compensation for Intangibles
If you receive compensation for loss of an intangible right:
- May create a non-trading gain
- Enter in Box 195
Has Intangible Asset Revaluations
Certain accounting revaluations may trigger Box 195 entries (less common for small companies).
Calculating the Gain
The gain on an intangible asset is generally:
``` Gain = Disposal Proceeds - Tax Written Down Value ```
For intangibles under the corporate intangibles regime:
- Cost is amortised for tax purposes
- Gain is proceeds minus remaining tax value
The Intangibles Regime
Intangible assets acquired from 1 April 2002 fall under a special regime:
Key Features
- Amortisation/impairment is tax deductible
- Gains on disposal are taxable income
- Losses are deductible
- Different from capital gains treatment
Pre-2002 Intangibles
Older intangibles may follow different rules:
- May be subject to capital gains treatment
- Goodwill acquired before 2002 has special rules
Most Small Companies: Box 195 = Zero
For typical small limited companies:
- No significant intangible asset disposals
- IP is usually held for trading purposes
- Goodwill doesn't get sold separately
Related Boxes
| Box | Description |
|---|---|
| 190 | Property business income |
| 195 | Non-trading gains on intangibles (this box) |
| 200 | Tonnage tax profits |
| 205 | Income not included elsewhere |
| 210 | Chargeable gains |
Common Questions
My company sold its trademark - does that go here?
It depends:
- If the trademark was used in your trade: Likely trading income, not Box 195
- If it was an investment/non-trading asset: Box 195 applies
What about goodwill when selling my business?
Goodwill sold as part of selling a business typically involves:
- The entire business changing hands
- Different tax treatment depending on when goodwill was acquired
- May involve chargeable gains (Box 210) for pre-April 2002 goodwill
- Specialist advice recommended for business sales
Do software rights go in Box 195?
Software development costs are usually:
- Trading expenses (deductible against trading profits)
- Or capital expenditure qualifying for R&D relief
- Non-trading gains only if software rights were investments
My company has patents it licenses - is that Box 195?
Licensing income from patents is usually:
- Box 175 (annual payments) if licensing is non-trading
- Box 150 (trading income) if licensing is your trade
- Box 195 is for gains on disposal, not ongoing income
When Using TinyTax
TinyTax focuses on typical small company scenarios:
- Most users won't have intangible asset disposals
- If you do, you may need specialist advice
- Complex transactions involving IP often require professional input
Related Articles
- CT600 Box 190: Property Income
- CT600 Box 205: Other Income
- Capital Allowances on CT600
Need Help?
TinyTax handles standard CT600 scenarios for small companies. For complex intangible asset transactions, consider consulting a tax specialist to ensure correct treatment.
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