Corporation Tax Act 2009 section 760

References to cost of asset where asset affected by change of accounting policy

Section 760 explains how to determine the cost of an intangible fixed asset for reinvestment relief purposes when that asset has been affected by a change of accounting policy requiring adjustments.

• When a change of accounting policy has affected an intangible fixed asset, the way you read references to that asset's cost in the reinvestment relief rules may need to be modified.
• If the change of accounting policy resulted in straightforward adjustments (under section 872), no modification to the asset's cost is needed — you simply use the original cost figure.
• If the change of accounting policy involved disaggregation of the asset (under section 874 or 876), the cost must be scaled down to the same proportion used to calculate the asset's revised tax written-down value after the change.
• These rules also apply where an election for fixed-rate writing down has been made in relation to an asset resulting from the change of accounting policy.