Corporation Tax Act 2009 section 879B

Requirement to write down at a fixed rate

Section 879B requires that certain intangible assets acquired or created on or after 1 April 2019 must be written down for tax purposes at a fixed annual rate of 6.5%, rather than following the company's accounting treatment.

• Applies to relevant intangible assets acquired or created on or after 1 April 2019
• The asset must be written down at a fixed rate of 6.5% of cost per annum for tax purposes
• The company is automatically treated as having elected for fixed rate writing down — no separate election is needed
• The Treasury has the power to change the 6.5% rate by regulations in the future