C1C2C3C4C5C6Part 8Intangible fixed assets
Pt. 8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5
Chapter 6How credits and debits are given effect
Trading etc credits and debits
747Assets held for purposes of trade
1
This section applies if credits or debits are to be brought into account in an accounting period in respect of an asset held by a company for the purposes of a trade carried on by it in that period.
2
The credits are given effect by treating them as receipts of the trade in calculating the profits of the trade for tax purposes.
3
The debits are given effect by treating them as expenses of the trade in calculating the profits of the trade for tax purposes.
748Assets held for purposes of property business
1
This section applies if credits or debits are to be brought into account in an accounting period in respect of an asset held by a company for the purposes of a property business carried on by it in that period.
2
The credits are given effect by treating them as receipts of the business in calculating the profits of the business for tax purposes.
3
The debits are given effect by treating them as expenses of the business in calculating the profits of the business for tax purposes.
4
In subsection (1) “property business” means—
F1a
an ordinary UK property business,
b
a UK furnished holiday lettings business,
c
an ordinary overseas property business, or
d
an EEA furnished holiday lettings business.
F25
In this section—
“commercial letting of furnished holiday accommodation” has the meaning given by section 265,
“EEA furnished holiday lettings business” means an overseas property business so far as it consists of the commercial letting of furnished holiday accommodation in one or more EEA states,
“ordinary overseas property business” means an overseas property business except so far as it is an EEA furnished holiday lettings business,
“ordinary UK property business” means a UK property business except so far as it is a UK furnished holiday lettings business, and
“UK furnished holiday lettings business” means a UK property business so far as it consists of the commercial letting of furnished holiday accommodation.
749Assets held for purposes of mines, transport undertakings, etc
1
This section applies if credits or debits are to be brought into account in an accounting period in respect of an asset held by a company for the purposes of a concern listed in section 39(4) (mines, quarries and other concerns) that is carried on by it in that period.
2
The credits are given effect by treating them as receipts of the concern in calculating the profits of the concern under Part 3 (trading income).
3
The debits are given effect by treating them as expenses of the concern in calculating the profits of the concern under that Part.
750Assets held for purposes falling within more than one section
If an asset is held—
a
for purposes falling within more than one of sections 747 to 749, or
b
for purposes falling within one or more of those sections and for purposes not so falling,
any necessary apportionment must be made on a just and reasonable basis.
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)