Asset written down on accounting basisU.K.
27(1)For the purposes of this Schedule the tax written down value of an intangible fixed asset to which paragraph 9 applies (writing down on accounting basis) is given by:
where—
Tax Cost is the cost of the asset recognised for tax purposes;
Debits is the total amount of the debits previously brought into account for tax purposes in respect of the asset under paragraph 9 [F1or paragraph 116A (adjustment on change of accounting policy)] ; and
Credits is the total amount of any credits previously brought into account for tax purposes in respect of the asset under paragraph 15 (revaluation) [F2or paragraph 116A (adjustment on change of accounting policy)] .
(2)Subject to any adjustment required for tax purposes, the cost of the asset recognised for tax purposes is the same as the amount of the expenditure on the asset that is capitalised for accounting purposes.
(3)This paragraph has effect subject to paragraph 29 in the case of an asset that has been the subject of a part realisation.
Textual Amendments
F1Words in Sch. 29 para. 27(1) inserted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 76(a)
F2Words in Sch. 29 para. 27(1) inserted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 76(b)