Part 8Intangible fixed assets

Chapter 10Excluded assets

Assets wholly excluded from this Part

803Non-commercial purposes etc

This Part does not apply to an intangible fixed asset so far as it is held—

a

for a purpose that is not a business or other commercial purpose of the company, or

b

for the purpose of activities in respect of which the company is not within the charge to corporation tax.

804Assets for which capital allowances previously made

1

This Part does not apply to an intangible asset of a company if conditions A, B and C are met.

2

Condition A is that the asset falls to be treated as an intangible asset in accounts of the company.

3

Condition B is that in a previous period of account the asset fell to be treated as a tangible asset in accounts of the company.

4

Condition C is that an allowance under Part 2 of CAA 2001 (plant and machinery allowances) was made to the company in respect of the asset on the basis that it was a tangible asset.

805Rights over tangible assets

This Part does not apply to an intangible fixed asset so far as it represents—

a

rights enjoyed by virtue of an estate, interest or right in or over land, or

b

rights in relation to tangible movable property.

806Financial assets

1

This Part does not apply to financial assets.

2

In this Part “financial asset” has the same meaning as it has for accounting purposes.

3

“Financial asset” includes—

a

loan relationships (see Parts 5 and 6),

b

derivative contracts (see Part 7),

c

contracts or policies of insurance or capital redemption policies, and

d

rights under a collective investment scheme within the meaning of FISMA 2000 (see section 235 of that Act).

807Rights in companies, trusts etc

1

This Part does not apply to an asset so far as it represents—

a

shares or other rights in relation to the profits, governance or winding up of a company,

b

rights under a trust, or

c

the interest of a partner in a firm.

2

Subsection (1)(b) does not apply to rights that for accounting purposes fall to be treated as representing an interest in trust property that is an intangible fixed asset to which this Part applies.

3

Subsection (1)(c) does not apply to an interest that for accounting purposes falls to be treated as representing an interest in partnership property that is an intangible fixed asset to which this Part applies.

808Assets representing production expenditure on films

1

This Part does not apply to an intangible fixed asset held by a film production company so far as it represents production expenditure on a film to which Chapter 2 of Part 15 (taxation of activities of film production company) applies.

2

In this section—

a

“film” has the same meaning as in Part 15 (see section 1181),

b

“film production company” has the same meaning as in that Part (see section 1182), and

c

“production expenditure” has the same meaning as in that Part (see section 1184(1)).

809Oil licences

1

This Part does not apply to an oil licence or an interest in an oil licence.

2

In subsection (1) “oil licence” means a UK oil licence or a foreign oil concession.

3

In this section—

  • “UK oil licence” means a licence under—

    1. a

      Part 1 of the Petroleum Act 1998 (c. 17) (“the 1998 Act”), or

    2. b

      the Petroleum Production (Northern Ireland) Act 1964 (c. 28 (N.I.)) (“the 1964 Act”),

    authorising the winning of oil, and

  • “foreign oil concession” means any right that—

    1. a

      is a right to search for or win oil that exists in its natural condition in a place to which neither the 1998 Act nor the 1964 Act applies, and

    2. b

      is conferred or exercisable (whether or not under a licence) in relation to a particular area.

4

In subsection (1) “interest in an oil licence” includes any entitlement under an agreement to, or to a share of, oil or the proceeds of its sale if the agreement—

a

relates to oil from the whole or a part of the licensed area, and

b

was made before the extraction of the oil to which it relates.

5

In subsection (4)(a) “licensed area” means—

a

in relation to a UK oil licence, the area to which the licence applies, and

b

in relation to a foreign oil concession, the area in relation to which the right to search for or win oil is conferred or exercisable under the concession.

6

In this section “oil”—

a

in relation to a UK oil licence, means any substance won or capable of being won under the authority of a licence granted under Part 1 of the 1998 Act or the 1964 Act, other than methane gas won in the course of making and keeping mines safe, and

b

in relation to a foreign oil concession, means any petroleum (as defined in section 1 of the 1998 Act).