Corporation Tax Act 2009 section 743

Asset written down at fixed rate

Section 743 explains how to calculate the tax written-down value of an intangible fixed asset where the company has elected to use the fixed-rate writing-down method.

• The tax written-down value equals the asset's capitalised cost recognised for tax purposes, minus any fixed-rate writing-down debits already claimed in earlier periods.
• The cost recognised for tax purposes is the same as the amount of expenditure on the asset that has been capitalised in the company's accounts.
• This starting cost may be adjusted where required by other intangible fixed asset rules or by transfer pricing provisions dealing with non-arm's length transactions.
• Special rules apply where part of the asset has already been realised, or where there has been a change of accounting policy affecting the asset.