|
| |
|
(d) | this Part applies in relation to each of the notional original assets and its |
| |
corresponding resulting asset accordingly. |
| |
(5) | For the purposes of subsection (4)(c) the appropriate proportion of every |
| |
amount falling to be taken into account in relation to the original undivided |
| |
asset that is to be attributed to each notional original asset is found by reference |
| 5 |
to the notional original asset’s corresponding resulting asset. |
| |
(6) | The appropriate proportion in relation to each resulting asset is—![equation: over[(*s11.00sf"Book Antiqua Parliamentary"fV"Regular"V*)times[char[A],char[V],char[
L]],times[char[T],char[A],char[V],char[L]]]](missing.gif) |
| |
| |
AVL is the accounting value of that resulting asset at the beginning of the |
| |
| 10 |
TAVL is the sum of the accounting values of all the resulting assets at the |
| |
beginning of that period. |
| |
| |
878 | Exclusion of credits or debits brought into account under other provisions |
| |
(1) | A credit or debit is not required to be brought into account under this Chapter |
| 15 |
so far as a credit or debit representing the accounting difference in question is |
| |
brought into account for tax purposes under a provision specified in |
| |
| |
(2) | Those provisions are— |
| |
(a) | section 723 (revaluation), |
| 20 |
(b) | section 725 (reversal of previous accounting loss), or |
| |
(c) | section 732 (reversal of previous accounting gain). |
| |
879 | Subsequent events affecting asset subject to adjustment under this Chapter |
| |
(1) | On a further change of accounting policy affecting an intangible fixed asset in |
| |
relation to which this Chapter has applied, the previous provisions of this |
| 25 |
| |
(2) | On a subsequent part realisation affecting the asset in question, section 744 |
| |
(effect of part realisation of asset) applies. |
| |
| |
| 30 |
| |
| |
| |
|
| |
|
| |
|
(a) | sets out a general rule limiting the application of this Part to certain |
| |
assets (see section 882(1): application of this Part to assets created or |
| |
acquired on or after 1 April 2002), |
| |
(b) | makes provision about when assets are treated as created or acquired |
| |
| 5 |
(c) | makes special provision about particular kinds of assets (see sections |
| |
| |
(d) | provides how roll-over relief is to apply in some circumstances where |
| |
assets excluded by the general rule mentioned in paragraph (a) are |
| |
involved (see sections 898 and 899). |
| 10 |
881 | Meaning of “pre-FA 2002 assets” |
| |
Intangible fixed assets which are excluded from the application of this Part by |
| |
the general rule mentioned in section 880(a) (subject to any express provision |
| |
to the contrary) are referred to in this Part as “pre-FA 2002 assets”. |
| |
| 15 |
882 | Application of this Part to assets created or acquired on or after 1 April 2002 |
| |
(1) | The general rule is that this Part applies only to intangible fixed assets of a |
| |
company (“the company”) that— |
| |
(a) | are created by the company on or after 1 April 2002, |
| |
(b) | are acquired by the company on or after that date from a person who at |
| 20 |
the time of the acquisition is not a related party in relation to the |
| |
| |
(c) | are acquired by the company on or after that date in case A, B or C from |
| |
a person who at the time of the acquisition is a related party in relation |
| |
| 25 |
(2) | For provisions explaining when assets are treated as created or acquired, see |
| |
| |
(3) | Case A is where the asset is acquired from a company in relation to which the |
| |
asset was a chargeable intangible asset immediately before the acquisition. |
| |
(4) | Case B is where the asset is acquired from a person (“the intermediary”) who |
| 30 |
acquired the asset on or after 1 April 2002 from a third person— |
| |
(a) | who was not at the time of the intermediary’s acquisition a related |
| |
| |
(i) | to the intermediary, or |
| |
(ii) | if the intermediary was not a company, to a company in relation |
| 35 |
to which the intermediary was a related party, and |
| |
(b) | who is not, at the time of the acquisition by the company, a related |
| |
party in relation to the company. |
| |
(5) | Case C is where the asset was created on or after 1 April 2002 by the person |
| |
from whom it is acquired or any other person. |
| 40 |
(6) | The general rule in subsection (1) is subject to— |
| |
(a) | section 890 (fungible assets: application of section 858), |
| |
(b) | section 892 (certain assets acquired on transfer of a business), |
| |
(c) | section 893 (assets whose value derives from pre-FA 2002 assets), |
| |
|
| |
|
| |
|
(d) | section 895 (assets acquired in connection with disposals of pre-FA 2002 |
| |
| |
(e) | section 897 (application to pre-FA 2002 assets consisting of |
| |
telecommunication rights), |
| |
(f) | sections 898 and 899 (application of roll-over relief in relation to some |
| 5 |
| |
(g) | section 905 (pre-FA 2002 assets: Lloyd’s syndicate capacity). |
| |
(7) | This section does not restrict the application of this Part in accordance with |
| |
section 896 (application to royalties) (but see section 896(3)). |
| |
When assets are treated as created or acquired |
| 10 |
883 | Assets treated as created or acquired when expenditure incurred |
| |
| |
(a) | applies for the purposes of section 882 (application of this Part to assets |
| |
created or acquired on or after 1 April 2002), and |
| |
(b) | applies to all intangible assets except those to which the provisions |
| 15 |
specified in subsection (2) apply. |
| |
(2) | The provisions referred to in subsection (1)(b) are— |
| |
(a) | section 884 (internally-generated goodwill: time of creation), |
| |
(b) | section 885 (certain other internally-generated assets: time of creation), |
| |
| 20 |
(c) | section 886 (assets representing production expenditure on films: time |
| |
| |
(3) | An intangible asset to which this section applies is treated as created or |
| |
acquired on or after 1 April 2002 so far as expenditure on its creation or |
| |
acquisition is incurred on or after that date. |
| 25 |
(4) | As to whether expenditure on the creation or acquisition of the asset is incurred |
| |
on or after 1 April 2002, see sections 887 to 889. |
| |
(5) | If only part of the expenditure on the creation or acquisition of the asset is |
| |
incurred on or after 1 April 2002— |
| |
(a) | this Part applies as if there were a separate asset representing the |
| 30 |
expenditure so incurred, and |
| |
(b) | the alternative enactments apply as if there were a separate asset |
| |
representing the expenditure not so incurred. |
| |
(6) | In subsection (5) “the alternative enactments” means the enactments that apply |
| |
where this Part does not apply. |
| 35 |
(7) | Any apportionment necessary for the purposes of subsection (5) must be made |
| |
on a just and reasonable basis. |
| |
884 | Internally-generated goodwill: time of creation |
| |
For the purposes of section 882 (application of this Part to assets created or |
| |
acquired on or after 1 April 2002) internally-generated goodwill is treated as |
| 40 |
created before (and not on or after) 1 April 2002 if the business in question was |
| |
carried on at any time before 1 April 2002 by the company or a related party. |
| |
|
| |
|
| |
|
885 | Certain other internally-generated assets: time of creation |
| |
| |
(a) | applies for the purposes of section 882 (application of this Part to assets |
| |
created or acquired on or after 1 April 2002), and |
| |
(b) | applies to an internally-generated asset representing non-qualifying |
| 5 |
| |
(2) | In this section “non-qualifying expenditure” means expenditure that under the |
| |
law as it was before 1 April 2002 is not qualifying expenditure for the purposes |
| |
of any allowance under CAA 2001. |
| |
(3) | If only part of the expenditure on the creation or acquisition of the asset is non- |
| 10 |
qualifying expenditure, this Part applies as if there were separate assets |
| |
representing the non-qualifying expenditure and the other expenditure. |
| |
(4) | If this Part does not apply to the asset representing the non-qualifying |
| |
expenditure, the alternative enactments also apply as if there were a separate |
| |
asset representing that expenditure. |
| 15 |
(5) | In subsection (4) “the alternative enactments” means the enactments that apply |
| |
where this Part does not apply. |
| |
(6) | Any apportionment necessary for the purposes of subsection (3) or (4) must be |
| |
made on a just and reasonable basis. |
| |
(7) | An asset to which this section applies is treated for the purposes of section 882 |
| 20 |
as created before (and not on or after) 1 April 2002 if the asset in question was |
| |
held at any time before that date by the company or a related party. |
| |
886 | Assets representing production expenditure on films: time of creation |
| |
(1) | In determining for the purposes of this Part whether an asset representing |
| |
production expenditure on a film was created before 1 April 2002 or on or after |
| 25 |
that date, the asset is treated as created when the film is completed. |
| |
| |
(a) | “completed” has the same meaning as in Part 15 (see section 1181(5)), |
| |
(b) | “film” has the same meaning as in that Part (see section 1181), and |
| |
(c) | “production expenditure” has the same meaning as in that Part (see |
| 30 |
| |
When expenditure treated as incurred |
| |
| |
(1) | For the purposes of section 883 (assets treated as created or acquired when |
| |
expenditure incurred) the general rule is that expenditure on the acquisition of |
| 35 |
an asset is treated as incurred when it is recognised for accounting purposes. |
| |
| |
section 888 (cases where chargeable gains rule applies), and |
| |
section 889 (cases where capital allowances general rule applies). |
| |
|
| |
|