Abortive expenditure on realisationU.K.
26(1)Where in a period of account—
(a)a loss is recognised in the company’s profit and loss account in respect of expenditure by the company for the purposes of a transaction that would constitute a realisation of an intangible fixed asset, but
(b)the transaction does not proceed to completion,
a corresponding debit shall be brought into account for tax purposes.
(2)Subject to any adjustment required for tax purposes, the amount of the debit recognised for tax purposes is the same as the amount of the loss recognised by the company for accounting purposes.