Corporation Tax Act 2009

743 Asset written down at fixed rate

(1) For the purposes of this Part, the tax written-down value of an intangible fixed asset in respect of which an election has been made under section 730 (writing down at fixed rate: election for fixed-rate basis) is the cost of the asset recognised for tax purposes, less any debits brought into account for tax purposes previously in respect of the asset under section 731 (writing down at fixed rate: calculation).

(2) For the purposes of subsection (1), the cost of the asset recognised for tax purposes is the same as the amount of the expenditure on the asset that is capitalised for accounting purposes.

(3) Subsection (2) is subject to any adjustments required by this Part or Schedule 28AA to ICTA (provision not at arm’s length).

(4) In the case of an asset that has been the subject of a part realisation, this section is subject to section 744.

(5) In the case of an asset that has been subject to adjustment on a change of accounting policy, this section is subject to Chapter 15 (adjustments on change of accounting policy).