Corporation Tax Act 2009 section 879

Subsequent events affecting asset subject to adjustment under this Chapter

Section 879 explains what happens when an intangible fixed asset that has already been through an accounting policy change adjustment is affected by a further accounting policy change or a part disposal.

• Where an intangible fixed asset has already been adjusted under these rules due to a change of accounting policy, the same adjustment rules apply again if there is a further change of accounting policy affecting that asset.
• If part of the asset is subsequently disposed of (a part realisation), the normal part realisation rules in section 744 apply to that event.
• This ensures that each successive change of accounting policy is dealt with consistently, using the same framework as the original adjustment.
• The section prevents any gap in the rules by confirming that both repeated policy changes and partial disposals are properly covered for tax purposes.