Corporation Tax Act 2009 section 802

Effect of partial exclusion

Section 802 explains how an intangible fixed asset is treated when it falls partly within and partly outside the intangible fixed asset rules in Part 8.

• Where an asset is only partially excluded from Part 8 (for example, because only some of the rights it represents, or only some of the purposes for which it is held, fall within an exclusion), the asset is treated as if it were split into two separate assets.
• The non-excluded portion is treated as a separate asset to which the intangible fixed asset rules in Part 8 apply in the normal way.
• The excluded portion is treated as a separate asset governed by the other provisions of the Corporation Tax Acts (for example, the chargeable gains rules).
• Any apportionment needed to split the asset between the excluded and non-excluded parts must be carried out on a just and reasonable basis.