Finance Act 2002

Writing down at fixed rate: election for fixed-rate basis

10 (1) A company may elect to write down the cost of an intangible fixed asset for tax purposes at a fixed rate.

(2) An election to that effect may be made whether or not the asset is written down for accounting purposes.

(3) An election under this paragraph must be made—

(a) in writing,

(b) to the Inland Revenue,

(c) no later than two years after the end of the accounting period in which the asset is created or acquired by the company making the election.

(4) An election under this paragraph in relation to an asset has effect in relation to all expenditure on the asset that is capitalised for accounting purposes.

(5) An election under this paragraph is irrevocable.

(6) Paragraph 9 (writing down on accounting basis) does not apply to an asset in respect of which an election is made under this paragraph.