Corporation Tax Act 2009 section 756

Conditions relating to expenditure on other assets

Section 756 sets out the conditions that must be met when a company reinvests the proceeds from disposing of an intangible fixed asset into replacement assets.

• Replacement expenditure must be incurred within a window starting 12 months before and ending 3 years after the disposal of the old asset, though HMRC officers may extend either end of this window
• The replacement expenditure must be capitalised by the company in its accounts
• Immediately after the expenditure is incurred, the replacement assets must qualify as chargeable intangible assets of the company
• Expenditure is treated as incurred at the point it is recognised for accounting purposes