SCHEDULES

SCHEDULE 29Gains and losses of a company from intangible fixed assets

Part 2Debits in respect of intangible fixed assets

10Writing down at fixed rate: election for fixed-rate basis

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.