Corporation Tax Act 2009 section 896

Application to royalties

Section 896 sets out when royalties fall within the intangible fixed assets regime under Part 8 of the Corporation Tax Act 2009, based on the date they are recognised in the accounts.

• Part 8 of the Act applies to royalties that are recognised for accounting purposes on or after 1 April 2002.
• Royalties recognised for accounting purposes before 1 April 2002 are excluded from Part 8.
• Even where Part 8 would otherwise apply, no amount may be brought into account in connection with the realisation of a pre-Finance Act 2002 asset.
• The meaning of "realisation" for these purposes is as defined in section 734 of the Act.