Non-trading credits and debitsU.K.
34(1)Where, or to the extent that, in an accounting period, there are—
(a)credits in respect of intangible fixed assets that are not within any of paragraphs 31 to 33 (“non-trading credits”), or
(b)debits in respect of intangible fixed assets that are not within any of those paragraphs (“non-trading debits”),
the company’s aggregate non-trading gain or loss on intangible fixed assets must be calculated.
(2)There is a non-trading gain on intangible fixed assets if—
(a)there are only non-trading credits, or
(b)there are both non-trading credits and non-trading debits and the aggregate of the former exceeds the aggregate of the latter.
The amount of the non-trading gain is the aggregate amount of the credits or, as the case may be, the amount of the excess.
(3)There is a non-trading loss on intangible fixed assets if—
(a)there are only non-trading debits, or
(b)there are both non-trading credits and non-trading debits and the aggregate of the latter exceeds the aggregate of the former.
The amount of the non-trading loss is the aggregate amount of the debits or, as the case may be, the amount of the excess.
(4)A non-trading gain on intangible fixed assets is chargeable to tax under Case VI of Schedule D.
(5)A non-trading loss on intangible fixed assets is given effect in accordance with the following paragraph.