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 6 U.K. How credits and debits are given effect

Non-trading credits and debits U.K.

751 Non-trading gains and losses U.K.

(1) If there are non-trading credits or debits in an accounting period in respect of intangible fixed assets, the company's non-trading gain or loss on such assets in the period must be calculated.

(2) There is a non-trading gain on intangible fixed assets in an accounting period if subsection (3) or (4) applies.

(3) If in the accounting period—

(a) there are non-trading credits, but

(b) there are no non-trading debits,

there is a non-trading gain on intangible fixed assets equal to the sum of the credits.

(4) If in the accounting period—

(a) there are both non-trading credits and non-trading debits, and

(b) the total non-trading credits exceed the total non-trading debits,

there is a non-trading gain on intangible fixed assets equal to the excess.

(5) There is a non-trading loss on intangible fixed assets in an accounting period if subsection (6) or (7) applies.

(6) If in the accounting period—

(a) there are non-trading debits, but

(b) there are no non-trading credits,

there is a non-trading loss on intangible fixed assets equal to the sum of the debits.

(7) If in the accounting period—

(a) there are both non-trading credits and non-trading debits, and

(b) the total non-trading debits exceed the total non-trading credits,

there is a non-trading loss on intangible fixed assets equal to the excess.

(8) For the treatment of non-trading gains and losses see—

(a) section 752 (charge to tax on non-trading gains on intangible fixed assets), and

(b) section 753 (treatment of non-trading losses).

752 Charge to tax on non-trading gains on intangible fixed assets U.K.

The charge to corporation tax on income applies to non-trading gains arising to a company on intangible fixed assets.

753 Treatment of non-trading losses U.K.

(1) A company that has a non-trading loss on intangible fixed assets for an accounting period may claim to have the whole or part of the loss set off against the company's total profits for that period.

(2) Such a claim must be made—

(a) not later than the end of the period of 2 years immediately following the end of the accounting period to which it relates, or

(b) within such further period as an officer of Revenue and Customs may allow.

(3) To the extent that the loss is not[F1 , in any period (“the reference period”)]—

(a) set off against total profits on a claim under subsection (1), or

(b) surrendered by way of group relief [F2 under Part 5 of CTA 2010],

it is carried forward to the next accounting period of the company and treated as if it were a non-trading [F3 loss on intangible fixed assets for] that period.

[F4 (4) But subsection (3) does not apply if the company ceased to be a company with investment business in the reference period.

(5) In the application of subsection (3) to an amount of a loss previously carried forward under that subsection, the reference in paragraph (b) to group relief under Part 5 of CTA 2010 is to be read as a reference to group relief for carried-forward losses under Part 5A of that Act.

(6) In this section “company with investment business” has the same meaning as in Part 16 (see section 1218B).]

Textual Amendments

F1 Words in s. 753(3) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 5(2)(a)

F2 Words in s. 753(3)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 644 (with Sch. 2)

F3 Words in s. 753(3) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 5(2)(b)

F4 S. 753(4)-(6) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 5(3)

Modifications etc. (not altering text)

C8 S. 753 modified by 2010 c. 4, s. 676AI(1) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 75)

C9 S. 753 excluded by 2010 c. 4, s. 356NE(2)(3)(a) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 57(4))

C10 S. 753 excluded by 2010 c. 4, s. 304(1A)(1B) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 49(2))