SCHEDULE 29Gains and losses of a company from intangible fixed assets
Part 2Debits in respect of intangible fixed assets
Expenditure written off as it is incurred
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(1)
Where in a period of account expenditure on an intangible fixed asset is recognised in a company’s profit and loss account, 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.
(3)
Nothing in—
section 74(1)(m) or (p) of the Taxes Act 1988 (annual payments and patent royalties not to be deducted in computing profits under Case I or II of Schedule D), or
section 817(1)(b) of that Act (annual payments not to be deducted in arriving at the amount of profits or gains for tax purposes),
has effect to prevent a debit being brought into account for tax purposes by a company in accordance with this paragraph (and given effect accordingly under Part 6).
(4)
This paragraph does not apply to a loss that represents previously capitalised expenditure.