Tax treatment of expenditure on acquisition and receipts from disposalU.K.
2(1)Amounts that may in accordance with [F1 generally accepted accounting practice] be taken into account in determining profit or loss for accounting purposes in respect of—U.K.
(a)expenditure on the acquisition of a right to which this section applies, or
(b)receipts from the disposal of any such right,
shall be treated as items of a revenue nature for tax purposes provided they are so taken into account in any relevant statutory accounts of the taxpayer.
(2)The reference in sub-paragraph (1) to the acquisition of a right to which this Schedule applies includes—
(a)the extension of rights attached to such a right, and
(b)in relation to a right subject to a derivative right, the cancellation or restriction of rights attached to the derivative right.
(3)The reference in sub-paragraph (1) to the disposal of a right to which this Schedule applies includes—
(a)the cancellation or restriction of rights attached to such a right, and
(b)the granting of a derivative right or the extension of rights attached to a derivative right.
Textual Amendments
F1Words in Sch. 23 para. 2(1) substituted (24.7.2002) by 2002 c. 23, s. 103(4)(f)