Textual Amendments
F1Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1
(1)An intangible fixed asset is a “pre-commencement asset” if it was created before the commencement day.
(2)“The commencement day” has the meaning given by section 5(4) of the Corporation Tax (Northern Ireland) Act 2015.
(3)Subsections (1) and (2) have effect for the purposes of this Chapter.
(4)The general rule is that intangible fixed assets are treated for the purposes of subsection (1) as having been created before the commencement day if they were held (by the company or another person) at any time before that day.
(5)The general rule is subject to the following provisions—
(a)section 357OI (goodwill);
(b)section 357OJ (assets representing production expenditure on films).
For the purposes of section 357OH(1) (pre-commencement asset), goodwill is treated as created—
(a)before the commencement day in a case in which the business in question was carried on by the company or any other person at any time before that day, and
(b)on or after the commencement day in any other case.
(1)In determining for the purposes of section 357OH(1) (pre-commencement asset) whether an asset representing production expenditure on a film was created before the commencement day or on or after that day, the asset is treated as created when the film is completed.
(2)In this section—
(a)“completed” has the same meaning as in Part 15 of CTA 2009 (see section 1181(5) of that Act),
(b)“film” has the same meaning as in that Part (see section 1181 of that Act), and
(c)“production expenditure” has the same meaning as in that Part (see section 1184 of that Act).
(1)This section and section 357OL have effect for the purposes of this Chapter in relation to assets to which section 858 of CTA 2009 (treatment of fungible assets) applies.
(2)Section 858 of CTA 2009 applies as if—
(a)pre-commencement assets, and
(b)intangible fixed assets that are not pre-commencement assets,
were assets of different kinds.
(3)If section 858 of CTA 2009 applies (whether or not it is a case where subsection (2) has effect)—
(a)a single asset comprising pre-commencement assets is treated as itself being a pre-commencement asset, and
(b)a single asset comprising intangible fixed assets that are not pre-commencement assets is treated as itself being an asset which is not a pre-commencement asset.
(1)Subsection (2) applies if—
(a)a company realises a fungible asset, and
(b)apart from section 357OK(2), the asset would be treated as part of a single asset comprising both pre-commencement assets and assets that are not pre-commencement assets.
(2)The realisation is treated as diminishing the single asset of the company comprising pre-commencement assets in priority to diminishing the single asset of the company comprising assets that are not pre-commencement assets.
(3)Fungible assets acquired by a company that would not otherwise be treated as pre-commencement assets are so treated so far as they are identified, in accordance with the following rules, with pre-commencement assets realised by the company.
(4)Rule 1 is that assets acquired are identified with pre-commencement assets of the same kind realised by the company within the period beginning 30 days before and ending 30 days after the date of the acquisition.
(5)The reference in subsection (4) to assets “of the same kind” is to assets that are, or but for section 357OK(2) would be, treated as part of a single asset because of section 858 of CTA 2009.
(6)Rule 2 is that assets realised earlier are identified before assets realised later.
(7)Rule 3 is that assets acquired earlier are identified before assets acquired later.
(8)In this section—
“fungible asset” means an intangible fixed asset to which section 858 of CTA 2009 applies;
“realisation”, in relation to a fungible asset, has the same meaning as in Part 8 of CTA 2009 (see sections 734 and 856 of that Act).]