Corporation Tax Act 2009 section 726

Introduction

Section 726 introduces the rules on how companies can claim tax debits for various types of accounting losses relating to intangible fixed assets.

• Tax debits may arise when expenditure on an intangible fixed asset is written off as it is incurred, rather than being capitalised
• Tax debits may also arise when the capitalised cost of an intangible fixed asset is written down, either on an accounting basis or at an elected fixed rate
• A tax debit can arise from the reversal of a previous accounting gain on an intangible fixed asset
• These rules do not cover amounts arising on the realisation (disposal or deemed disposal) of an intangible fixed asset, which are dealt with separately