Corporation Tax Act 2009 section 730

Writing down at fixed rate: election for fixed-rate basis

Section 730 allows a company to elect to write down the cost of an intangible fixed asset for tax purposes at a fixed rate, regardless of the accounting treatment applied to that asset.

• A company may choose to write down an intangible fixed asset at a fixed rate for tax purposes, whether or not the asset is being written down in the accounts
• The election must be made in writing to an officer of Revenue and Customs within 2 years of the end of the accounting period in which the asset was created or acquired
• The election covers all expenditure on the asset that has been capitalised for accounting purposes
• Once made, the election is irrevocable and cannot be withdrawn or amended