Part 8Intangible fixed assets

Chapter 6How credits and debits are given effect

Non-trading credits and debits

751Non-trading gains and losses

(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).