I have made a payment to a Master Franciseholder to cover next 5 years i.e. I made a payment that allows me to hold a franchise for the next 5 years. In addition I make an annual payment which is linked to my sales. I know I can get tax relief for the annual payment but what about the upfront 5 year payment? It’s not clear to me that I can get a capital allowance under the Intellectual Property rules.
Has anyone any experience of this type of payment or has anyone any ideas to offer?