Corporation Tax Act 2009 section 698

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

Section 698, which adjusts the tax treatment where accounting practice does not fully recognise the consideration received on a disposal of an intangible fixed asset, is subject to a transitional rule limiting its application to disposals on or after 16 May 2008.

• Section 698 addresses situations where accounting practice does not fully recognise the consideration received on a disposal of an intangible fixed asset
• This transitional provision disapplies section 698 for any disposal that took place before 16 May 2008
• Disposals occurring on or after 16 May 2008 are within the scope of section 698 and may require a tax adjustment
• The cut-off date of 16 May 2008 means that earlier transactions are unaffected, even if the accounting period straddles that date