Income Tax (Trading and Other Income) Act 2005 section 130-131

Certain telecommunication rights

Sections 130 and 131 provide an exemption from the intangible property rules in Chapter 4 of Part 5 for certain indefeasible rights to use telecommunications cable systems (IRUs) acquired before 21 March 2000, or acquired after that date from connected parties who originally held the rights before that date.

• An indefeasible right to use a telecommunications cable system (an IRU) acquired before 21 March 2000 is exempt from the income tax rules on intangible property in Chapter 4 of Part 5
• The same exemption applies where an IRU is acquired on or after 21 March 2000 from an associate or associated company, provided that associate or associated company originally acquired the IRU before that date
• The acquisition from the associate or associated company can be direct or indirect and still qualify for the exemption
• The terms "associate" and "associated company" are defined by reference to the Corporation Tax Act 2010, broadly covering persons connected through family or business relationships and companies under common control