SCHEDULES
SCHEDULE 29Gains and losses of a company from intangible fixed assets
Part 4Realisation of intangible fixed assets
20Realisation of asset written down for tax purposes
1
This paragraph applies where there is a realisation of an intangible fixed asset in respect of which debits have been brought into account for tax purposes—
a
under paragraph 9 (writing down on accounting basis), or
b
under paragraphs 10 and 11 (writing down at fixed rate).
2
Where this paragraph applies—
a
if the proceeds of realisation exceed the tax written down value of the asset, a credit equal to the excess shall be brought into account for tax purposes;
b
if the proceeds of realisation are less than the tax written down value of the asset, a debit equal to the shortfall shall be brought into account for tax purposes; and
c
if there are no proceeds of realisation, a debit equal to the tax written down value shall be brought into account for tax purposes.
3
References in this paragraph to the tax written down value of an asset are to its tax written down value immediately before the realisation.