PART 8B Trading profits taxable at the Northern Ireland rate

CHAPTER 8 Intangible fixed assets

Realisation credits and realisation debits

357OF Northern Ireland element: general rule
(1) If a realisation credit or realisation debit arises under section 735 of CTA 2009 (asset written down for tax purposes), its Northern Ireland element is determined by the formula—
A×NIC−TWDV
where—
A is the amount of the realisation credit or realisation debit;
NI is the total net Northern Ireland debits (see subsection (2));
C is the cost of the asset recognised for tax purposes, as defined by section 742(2) or 743(2) of CTA 2009;
TWDV is the tax written-down value of the asset within the meaning of Part 8 of CTA 2009 (see Chapter 5 of that Part).
(2) In subsection (1) “the total net Northern Ireland debits” means—
(a) in a case within section 742 of CTA 2009, the total debits previously brought into account for tax purposes under Part 8 of CTA 2009 in respect of the asset so far as they were Northern Ireland intangibles debits for the purposes of this Chapter, less the total credits previously so brought into account for tax purposes so far as they were Northern Ireland intangibles credits for the purposes of this Chapter, or
(b) in a case within section 743 of CTA 2009, the total debits previously brought into account for tax purposes under Part 8 of CTA 2009 in respect of the asset so far as they were Northern Ireland intangibles debits for the purposes of this Chapter.
(3) Subsection (4) applies if—
(a) a realisation credit or realisation debit arises under section 736 of CTA 2009 (asset shown in balance sheet and not written down for tax purposes), or
(b) a realisation credit arises under section 738 of CTA 2009 (asset not shown in balance sheet).
(4) The Northern Ireland element of the realisation credit or realisation debit is such proportion of the realisation credit or realisation debit as can on a just and reasonable basis be attributed to the holding of the asset for the purposes of the relevant Northern Ireland trade.
(5) This section does not apply to a realisation credit if section 357OG (cases involving roll-over relief) applies.
(6) In this section “the relevant Northern Ireland trade” means the qualifying trade carried on by the company in an accounting period in which it was a Northern Ireland company, except so far as the trade consists of an excluded activity.
Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1