Corporation Tax Act 2009 section 747

Assets held for purposes of trade

Section 747 explains how credits and debits relating to intangible fixed assets held for trade purposes are incorporated into the trade profit calculation.

• The section applies where credits or debits arise on an intangible fixed asset held for the purposes of a company's trade during an accounting period
• Credits relating to such assets are treated as receipts of the trade
• Debits relating to such assets are treated as expenses of the trade
• Both credits and debits feed directly into the calculation of trade profits for tax purposes