Corporation Tax Act 2009

When assets are treated as created or acquired U.K.

883 Assets treated as created or acquired when expenditure incurred U.K.

(1) This section—

(a) applies for the purposes of section 882 (application of this Part to assets created or acquired on or after 1 April 2002), and

[F1 (b) has effect subject to the provisions specified in subsection (2).]

(2) The provisions referred to in subsection (1)(b) are—

(a) section 884 (F2 ... goodwill: time of creation),

(b) section 885 ([F3 assets representing non-qualifying expenditure]: time of creation), and

(c) section 886 (assets representing production expenditure on films: time of creation).

(3) An intangible asset F4 ... is treated as created or acquired on or after 1 April 2002 so far as expenditure on its creation or acquisition is incurred on or after that date.

(4) As to whether expenditure on the creation or acquisition of the asset is incurred on or after 1 April 2002, see sections 887 to 889.

(5) If only part of the expenditure on the creation or acquisition of the asset is incurred on or after 1 April 2002—

(a) this Part applies as if there were a separate asset representing the expenditure so incurred, and

(b) the alternative enactments apply as if there were a separate asset representing the expenditure not so incurred.

(6) In subsection (5) “the alternative enactments” means the enactments that apply where this Part does not apply.

(7) Any apportionment necessary for the purposes of subsection (5) must be made on a just and reasonable basis.

Textual Amendments

F1 S. 883(1)(b) substituted (with effect in accordance with s. 70(7)(8) of the amending Act) by Finance Act 2009 (c. 10), s. 70(4)(a)

F2 Words in s. 883(2)(a) omitted (with effect in accordance with s. 70(7)(8) of the amending Act) by virtue of Finance Act 2009 (c. 10), s. 70(4)(b)

F3 Words in s. 883(2)(b) substituted (with effect in accordance with s. 70(7)(8) of the amending Act) by Finance Act 2009 (c. 10), s. 70(4)(c)

F4 Words in s. 883(3) omitted (with effect in accordance with s. 70(7)(8) of the amending Act) by virtue of Finance Act 2009 (c. 10), s. 70(4)(d)

884 F5 ... Goodwill: time of creation U.K.

For the purposes of section 882 (application of this Part to assets created or acquired on or after 1 April 2002) F6 ... goodwill is treated as created [F7 —

(a) before (and not on or after) 1 April 2002 in a case in which the business in question was carried on at any time before that date by the company or a related party, and

(b) on or after 1 April 2002 in any other case.]

Textual Amendments

F5 Words in s. 884 heading omitted (with effect in accordance with s. 70(7)(8) of the commencing Act) by virtue of Finance Act 2009 (c. 10), s. 70(5)(c)

F6 Words in s. 884 omitted (with effect in accordance with s. 70(7)(8) of the amending Act) by virtue of Finance Act 2009 (c. 10), s. 70(5)(a)

F7 Words in s. 884 substituted (with effect in accordance with s. 70(7)(8) of the amending Act) by Finance Act 2009 (c. 10), s. 70(5)(b)

885 [F8 Assets representing non-qualifying expenditure]: time of creation U.K.

(1) This section—

(a) applies for the purposes of section 882 (application of this Part to assets created or acquired on or after 1 April 2002), and

(b) applies to an F9 ... asset representing non-qualifying expenditure.

(2) In this section “non-qualifying expenditure” means expenditure that under the law as it was before 1 April 2002 is not qualifying expenditure for the purposes of any allowance under CAA 2001.

(3) If only part of the expenditure on the creation or acquisition of the asset is non-qualifying expenditure, this Part applies as if there were separate assets representing the non-qualifying expenditure and the other expenditure.

(4) If this Part does not apply to the asset representing the non-qualifying expenditure, the alternative enactments also apply as if there were a separate asset representing that expenditure.

(5) In subsection (4) “the alternative enactments” means the enactments that apply where this Part does not apply.

(6) Any apportionment necessary for the purposes of subsection (3) or (4) must be made on a just and reasonable basis.

(7) An asset to which this section applies is treated for the purposes of section 882 as created [F10 —

(a) before (and not on or after) 1 April 2002 in a case in which the asset in question was held at any time before that date by the company or a related party, and

(b) on or after 1 April 2002 in any other case.]

Textual Amendments

F8 Words in s. 885 heading substituted (with effect in accordance with s. 70(7)(8) of the commencing Act) by Finance Act 2009 (c. 10), s. 70(6)(c)

F9 Words in s. 885(1)(b) omitted (with effect in accordance with s. 70(7)(8) of the amending Act) by virtue of Finance Act 2009 (c. 10), s. 70(6)(a)

F10 Words in s. 885(7) substituted (with effect in accordance with s. 70(7)(8) of the amending Act) by Finance Act 2009 (c. 10), s. 70(6)(b)

886 Assets representing production expenditure on films: time of creation U.K.

(1) In determining for the purposes of this Part whether an asset representing production expenditure on a film was created before 1 April 2002 or on or after that date, the asset is treated as created when the film is completed.

(2) In this section—

(a) “completed” has the same meaning as in Part 15 (see section 1181(5)),

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

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