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 15Adjustments on change of accounting policy
Change of policy involving change of value
872Adjustments in respect of change
1
This section and section 873 apply if—
a
as a result of the change of accounting policy there is a difference (“the accounting difference”) between—
i
the accounting value of an intangible fixed asset of the company at the end of the earlier period, and
ii
the accounting value of that asset at the beginning of the later period, and
b
no election has been made in respect of the asset under section 730 (writing down at fixed rate: election for fixed-rate basis).
2
If there is an increase in that value, a corresponding credit must be brought into account for tax purposes in the later period.
3
If there is a decrease in that value, a corresponding debit must be brought into account for tax purposes in the later period.
4
The amount of the credit or debit is—
where—
D is the accounting difference,
WDVE is the tax written-down value of the asset at the end of the earlier period, and
AVE is the accounting value of the asset at the end of the earlier period.
5
But if subsection (2) applies, the credit must not exceed—
a
the sum of debits brought into account for tax purposes in respect of the asset before the later period, less
b
the sum of the credits so brought into account.
6
This section is subject to section 878 (exclusion of credits or debits brought into account under other provisions).
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)