Corporation Tax Act 2009 (c. 4)

Part 8 U.K. Intangible fixed assets

Modifications etc. (not altering text)

C1 Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)

C2 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)

C3 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

C4 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)

C5 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

C6 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)

C7 Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)

Chapter 10 U.K. Excluded assets

Assets wholly excluded from this Part U.K.

803 Non-commercial purposes etc U.K.

This Part does not apply to an intangible fixed asset so far as it is held—

(a) for a purpose that is not a business or other commercial purpose of the company, or

(b) for the purpose of activities in respect of which the company is not within the charge to corporation tax [F1 , otherwise than as a result of Chapter 3A of Part 2].

Textual Amendments

F1 Words in s. 803(b) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 6, 31

804 Assets for which capital allowances previously made U.K.

(1) This Part does not apply to an intangible asset of a company if conditions A, B and C are met.

(2) Condition A is that the asset falls to be treated as an intangible asset in accounts of the company.

(3) Condition B is that in a previous period of account the asset fell to be treated as a tangible asset in accounts of the company.

(4) Condition C is that an allowance under Part 2 of CAA 2001 (plant and machinery allowances) was made to the company in respect of the asset on the basis that it was a tangible asset.

805 Rights over tangible assets U.K.

This Part does not apply to an intangible fixed asset so far as it represents—

(a) rights enjoyed by virtue of an estate, interest or right in or over land, or

(b) rights in relation to tangible movable property.

806 Financial assets U.K.

(1) This Part does not apply to financial assets.

(2) In this Part “financial asset” has the same meaning as it has for accounting purposes.

(3) “Financial asset” includes—

(a) loan relationships (see Parts 5 and 6),

(b) derivative contracts (see Part 7),

(c) contracts or policies of insurance or capital redemption policies,

[F2 (ca) assets so far as they are derived from, or are referable to, contracts or policies of insurance or capital redemption policies,] and

(d) rights under a collective investment scheme within the meaning of FISMA 2000 (see section 235 of that Act).

Textual Amendments

F2 S. 806(3)(ca) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 175

807 Rights in companies, trusts etc U.K.

(1) This Part does not apply to an asset so far as it represents—

(a) shares or other rights in relation to the profits, governance or winding up of a company,

(b) rights under a trust, or

(c) the interest of a partner in a firm.

(2) Subsection (1)(b) does not apply to rights that for accounting purposes fall to be treated as representing an interest in trust property that is an intangible fixed asset to which this Part applies.

(3) Subsection (1)(c) does not apply to an interest that for accounting purposes falls to be treated as representing an interest in partnership property that is an intangible fixed asset to which this Part applies.

[F3 807A Assets representing expenditure on separate creative production trade U.K.

This Part does not apply to an intangible fixed asset held by a company treated as carrying on a separate trade under any of Parts 14A to 15E (production of films, television programmes, video games, theatrical productions, orchestral concerts and museum and gallery exhibitions), so far as the asset represents expenditure of that separate trade.]

Textual Amendments

F3 S. 807A substituted for ss. 808-808E (22.2.2024) by Finance Act 2024 (c. 3), Sch. 2 para. 5(2) (with Sch. 2 paras. 16(1), 17-25)

809 Oil licences U.K.

(1) This Part does not apply to an oil licence or an interest in an oil licence.

[F4 (1A) The reference in subsection (1) to an oil licence or an interest in an oil licence includes all goodwill, and any intangible asset, which relates to, derives from or is connected with an oil licence or an interest in an oil licence.]

(2) In [F5 this section] “oil licence” means a UK oil licence or a foreign oil concession.

(3) In this section—

• “UK oil licence” means a licence under—

  (a)

  Part 1 of the Petroleum Act 1998 (c. 17) (“the 1998 Act”), or

  (b)

  the Petroleum Production (Northern Ireland) Act 1964 (c. 28 (N.I.)) (“the 1964 Act”),

  authorising the winning of oil, and

• “foreign oil concession” means any right that—

  (a)

  is a right to search for or win oil that exists in its natural condition in a place to which neither the 1998 Act nor the 1964 Act applies, and

  (b)

  is conferred or exercisable (whether or not under a licence) in relation to a particular area.

(4) In [F6 this section] “interest in an oil licence” includes any entitlement under an agreement to, or to a share of, oil or the proceeds of its sale if the agreement—

(a) relates to oil from the whole or a part of the licensed area, and

(b) was made before the extraction of the oil to which it relates.

(5) In subsection (4)(a) “licensed area” means—

(a) in relation to a UK oil licence, the area to which the licence applies, and

(b) in relation to a foreign oil concession, the area in relation to which the right to search for or win oil is conferred or exercisable under the concession.

(6) In this section “oil”—

(a) in relation to a UK oil licence, means any substance won or capable of being won under the authority of a licence granted under Part 1 of the 1998 Act or the 1964 Act, other than methane gas won in the course of making and keeping mines safe, and

(b) in relation to a foreign oil concession, means any petroleum (as defined in section 1 of the 1998 Act).

Textual Amendments

F4 S. 809(1A) inserted (19.7.2011) (with effect in accordance with s. 62(5)(6) of the amending Act) by Finance Act 2011 (c. 11), s. 62(2)

F5 Words in s. 809(2) substituted (19.7.2011) (with effect in accordance with s. 62(5)(6) of the amending Act) by Finance Act 2011 (c. 11), s. 62(3)

F6 Words in s. 809(4) substituted (19.7.2011) (with effect in accordance with s. 62(5)(6) of the amending Act) by Finance Act 2011 (c. 11), s. 62(4)