Corporation Tax Act 2010 section 357OE

The Northern Ireland element of a realisation credit or debit

Section 357OE establishes the conditions under which a realisation credit or debit on an intangible fixed asset can have a Northern Ireland element, and signposts how that element is calculated.

• A realisation credit or debit can only have a Northern Ireland element if the intangible fixed asset was held by the company during an accounting period when it was a Northern Ireland company, and the asset was used wholly or partly for a qualifying trade (excluding any excluded activities).
• In the case of a realisation credit, a Northern Ireland element can also arise where roll-over relief was previously given on an asset that was held under those same conditions.
• The actual amount of the Northern Ireland element is calculated using the rules in section 357OF (the general rule) or section 357OG (where roll-over relief is involved).
• Roll-over relief refers to the relief available under Chapter 7 of Part 8 of the Corporation Tax Act 2009, which applies when a company realises an intangible fixed asset and reinvests the proceeds in a new one.