Corporation Tax Act 2009 section 897

Application to pre-FA 2002 assets consisting of telecommunication rights

Section 897 brings certain telecommunication rights acquired before the Finance Act 2002 regime into the intangible fixed assets rules under Part 8, ensuring continuity of tax treatment and access to roll-over relief.

• Telecommunication licences and similar rights falling within Chapter 10 of Part 2 of ITTOIA are subject to the intangible fixed assets regime in Part 8
• Any amounts previously recognised for tax purposes under Schedule 23 to FA 2000 in accounting periods ending before 1 April 2002 are treated as if they had been brought into account under Part 8
• Where such a right was acquired before the first accounting period ending on or after 1 April 2002 and qualified as a chargeable intangible asset immediately after that period began, special treatment applies
• In those circumstances, the asset is treated as having been a chargeable intangible asset throughout the period from acquisition to the start of that accounting period, enabling roll-over relief on realisation and reinvestment under Chapter 7