Corporation Tax Act 2009 section 887

General rule

Section 887 establishes the general rule for determining when expenditure on acquiring an intangible fixed asset is treated as having been incurred, for the purpose of deciding whether the asset is a pre-Finance Act 2002 asset.

• Expenditure on acquiring an intangible fixed asset is treated as incurred when it is recognised for accounting purposes
• This rule is relevant for determining whether an asset falls within the pre-FA 2002 regime under section 883
• The general rule is subject to two exceptions: one for cases where chargeable gains timing rules apply, and one for cases where capital allowances timing rules apply
• These exceptions ensure the general accounting-based timing rule does not conflict with pre-existing tax timing rules for capital gains or capital allowances