Part 2

Trading income
Chapter 10

Trade profits: certain telecommunication rights

Expenditure and receipts treated as revenue in nature
147
1
This section applies if, in accordance with generally accepted accounting practice, an amount in respect of—
a
expenditure on the acquisition of a relevant telecommunication right, or
b
a receipt from the disposal of a relevant telecommunication right,
is recognised in the accounts of a trade as an item in the calculation of profit or loss.
2
The amount is treated for income tax purposes as an item of a revenue nature.
3
“The acquisition of a relevant telecommunication right” includes—
a
the extension of rights attached to a relevant telecommunication right, and
b
if a relevant telecommunication right is subject to a derivative right, the cancellation or restriction of rights attached to the derivative right.
4
“The disposal of a relevant telecommunication right” includes—
a
the cancellation or restriction of rights attached to a relevant telecommunication right, and
b
the granting of a derivative right or the extension of rights attached to a derivative right.