This Chapter does not apply in relation to amounts brought into account in connection with the realisation of an intangible fixed asset within the meaning of Chapter 4 (see section 734).

For the rules about those amounts, see that Chapter.

If in a period of account a gain representing a receipt in respect of an intangible fixed asset is recognised in determining the company's profit or loss, a corresponding credit must be brought into account for tax purposes.

The amount of the credit is the same as the amount of the gain recognised by the company for accounting purposes.

Subsection (2) is subject to any adjustments required by this Part or F1Part 4 of TIOPA 2010 (provision not at arm's length).

So far as a receipt in respect of any royalty does not give rise to a credit under section 721 in the period of account in which it is received or in a subsequent period of account, a credit must be brought into account for tax purposes.

The credit must be brought into account in the accounting period in which the receipt is recognised for accounting purposes.

The amount of the credit is equal to so much of the amount of the receipt as does not give rise to a credit under section 721.

If in a period of account there is an increase in the accounting value of an intangible fixed asset on a revaluation, a credit must be brought into account for tax purposes.

The amount corresponding for tax purposes to the increase is—

$I\times \frac{\mathrm{WDV}}{\mathrm{AV}}$

where—

I is the increase,

WDV is the tax written-down value of the asset immediately before the revaluation, and

AV is the accounting value of the asset by reference to which the revaluation is carried out.

The net total of relevant previous tax debits is—

$D-C$

where—

D is the total debits previously brought into account for tax purposes in respect of the asset, and

C is the total credits so brought into account.

This section does not apply to an asset in respect of which an election has been made under section 730 (writing down at fixed rate: election for fixed-rate basis).

If in a period of account a gain is recognised in determining the company's profit or loss in respect of negative goodwill arising on an acquisition of a business, a corresponding credit must be brought into account for tax purposes.

The amount of the credit is so much of the gain recognised for accounting purposes as, on a just and reasonable apportionment, is attributable to intangible fixed assets.

A corresponding credit must be brought into account for tax purposes.

The amount of the credit is—

$\mathrm{RG}\times \frac{D}{\mathrm{RL}}$

where—

RG is the recognised gain,

D is the tax debit, and

RL is the reversed loss.

This section does not apply to a gain on a revaluation within the meaning of section 723 (see subsection (5) of that section).