Corporation Tax Act 2009 section 803

Non-commercial purposes etc.

Section 803 excludes intangible fixed assets from the Part 8 intangible fixed assets regime where they are held for non-commercial purposes or for activities outside the charge to corporation tax.

• The intangible fixed assets regime under Part 8 does not apply to an asset held for a purpose that is not a business or commercial purpose of the company.
• The regime also does not apply to an asset held for activities that are not within the charge to corporation tax (other than by reason of the rules on companies with investment business).
• This exclusion acts as a general-purpose filter, ensuring that the intangible fixed assets rules only cover commercially motivated, taxable activity.
• Without this provision, there would be no equivalent of the "wholly and exclusively" test for non-trading intangible gains and losses.