C1C4C3C5C7C2C6Part 8Intangible fixed assets
Pt. 8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5
Pt. 8 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)
Chapter 3Debits in respect of intangible fixed assets
731Writing down at fixed rate: calculation
1
If an election is made under section 730 for writing down at a fixed rate, a debit equal to the lesser of—
a
4% of the cost of the asset, and
b
the balance of the tax written-down value,
must be brought into account for tax purposes in each accounting period beginning with that in which the relevant expenditure is incurred.
2
If the accounting period is less than 12 months, the amount mentioned in subsection (1)(a) must be proportionately reduced.
3
In this section “the cost of the asset” means the cost recognised for tax purposes.
4
The cost of the asset recognised for tax purposes is the same as the amount capitalised for accounting purposes in respect of expenditure on the asset.
5
Subsection (4) is subject to any adjustments required by this Part or F1Part 4 of TIOPA 2010 (provision not at arm's length).
6
If there is a part realisation of the asset (see section 734(4)), the reference in subsection (1)(a) to the cost of the asset must be read as a reference to the sum of—
a
the cost recognised for tax purposes in respect of the value of the asset recognised for accounting purposes immediately after the part realisation, and
b
the cost recognised for tax purposes of any subsequent expenditure on the asset that is capitalised for accounting purposes.
7
If there is a further part realisation, subsection (6) applies again.
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)