Corporation Tax Act 2010 section 357OL

Realisation and acquisition of fungible assets

Section 357OL sets out the rules for how disposals and acquisitions of fungible intangible fixed assets are treated for Northern Ireland corporation tax purposes, particularly in determining priority between pre-commencement assets and other assets.

• When a company disposes of a fungible asset from a pool containing both pre-commencement and non-pre-commencement assets, the disposal is treated as coming from the pre-commencement pool first.
• Newly acquired fungible assets that would not normally qualify as pre-commencement assets can be re-characterised as pre-commencement assets if they can be matched to pre-commencement assets disposed of within 30 days before or after the acquisition date.
• Where matching is required, earlier disposals are matched before later disposals, and earlier acquisitions are matched before later acquisitions.
• A fungible asset is an intangible fixed asset of a type where individual units are interchangeable, and realisation means any disposal or event treated as a disposal under the intangible fixed assets rules.