Corporation Tax Act 2009 section 741

Meaning of "chargeable intangible asset" and "chargeable realisation gain"

Section 741 defines two related key terms — "chargeable intangible asset" and "chargeable realisation gain" — used throughout Part 8 of the Act when dealing with the realisation of intangible fixed assets.

• An intangible asset is a "chargeable intangible asset" if a hypothetical disposal by the company at that time would produce a gain giving rise to a taxable credit under Chapter 4.
• A "chargeable realisation gain" is a gain on the realisation of an intangible asset that results in a credit which must be brought into account for corporation tax purposes.
• A gain on realisation exists wherever the proceeds or value received exceed the tax written-down value of the asset, whether or not the asset appears in the balance sheet.
• Roll-over relief on reinvestment and tax-neutral transfers (such as intra-group transfers) are disregarded when determining whether an asset is a chargeable intangible asset or whether a chargeable realisation gain arises.