C1C4C3C5C7C2C6Part 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
Pt. 8 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)
Chapter 4Realisation of intangible fixed assets
736Asset shown in balance sheet and not written down for tax purposes
1
This section applies if—
a
there is a realisation of an intangible fixed asset to which section 735 does not apply, and
b
a value is shown for the asset in the company's balance sheet.
2
If the proceeds of realisation exceed the cost of the asset, a credit equal to the excess must be brought into account for tax purposes.
3
If the proceeds of realisation are less than the cost of the asset, a debit equal to the shortfall must be brought into account for tax purposes.
4
If there are no proceeds of realisation, a debit equal to the cost of the asset must be brought into account for tax purposes.
5
In this section “the cost of the asset” means the cost recognised for tax purposes.
6
The cost of the asset recognised for tax purposes is the same as the amount of expenditure on the asset capitalised by the company for accounting purposes.
7
Subsection (6) is subject to any adjustments required by this Part or F1Part 4 of TIOPA 2010 (provision not at arm's length)).
8
If this section has applied on a part realisation of an asset and applies again (on the realisation of the unrealised asset) the references in subsections (2) to (4) to the cost of the asset must be read as references to the sum of—
a
the cost recognised for tax purposes in respect of the value of the asset recognised for accounting purposes immediately after the part realisation, and
b
the cost recognised for tax purposes of any subsequent expenditure on the asset that is capitalised for accounting purposes.
9
If there is a further part realisation, subsection (8) applies again.
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)