Corporation Tax Act 2009 section 720

Introduction

Section 720 introduces the rules on how companies bring various types of accounting gains on intangible fixed assets into account as taxable credits.

• Five categories of credit arise: receipts recognised as they accrue, royalty receipts, revaluation gains, negative goodwill credits, and reversals of previous accounting losses
• These credits follow the accounting treatment of intangible fixed assets and are brought into the corporation tax computation accordingly
• The rules in this chapter do not apply where an intangible fixed asset is disposed of or otherwise realised — separate rules in Chapter 4 deal with those situations
• The section acts as a signpost to the detailed rules for each type of credit, contained in sections 721 to 725