Part 2 Trading income

Chapter 10 Trade profits: certain telecommunication rights

147 Expenditure and receipts treated as revenue in nature

(1) This section applies if, in accordance with generally accepted accounting practice, an amount in respect of—

(a) expenditure on the acquisition of a relevant telecommunication right, or

(b) a receipt from the disposal of a relevant telecommunication right,

is recognised in the accounts of a trade as an item in the calculation of profit or loss.

(2) The amount is treated for income tax purposes as an item of a revenue nature.

(3) “The acquisition of a relevant telecommunication right” includes—

(a) the extension of rights attached to a relevant telecommunication right, and

(b) if a relevant telecommunication right is subject to a derivative right, the cancellation or restriction of rights attached to the derivative right.

(4) “The disposal of a relevant telecommunication right” includes—

(a) the cancellation or restriction of rights attached to a relevant telecommunication right, and

(b) the granting of a derivative right or the extension of rights attached to a derivative right.