Part 8Intangible fixed assets
Chapter 4Realisation of intangible fixed assets
740Abortive expenditure on realisation
1
This section applies if—
a
in a period of account a loss is recognised in determining the company’s profit or loss in respect of expenditure by the company for the purposes of a transaction,
b
the transaction does not proceed to completion, but
c
were it completed, it would constitute a realisation of an intangible fixed asset.
2
A corresponding debit must be brought into account for tax purposes.
3
The amount of the debit is the same as the amount of the loss recognised by the company for accounting purposes.
4
Subsection (3) is subject to any adjustments required by this Part or Schedule 28AA to ICTA (provision not at arm’s length).