Taxation (International and Other Provisions) Act 2010 section 408

Excluded relevant intangibles debits and excluded relevant intangibles credits

Section 408 identifies which debits and credits arising from intangible fixed assets under Part 8 of the Corporation Tax Act 2009 are excluded when calculating a company's tax-EBITDA for corporate interest restriction purposes.

• Certain intangible asset debits — such as those for writing down on an accounting basis, writing down at a fixed rate, realisation losses, and accounting policy adjustments — are fully excluded from tax-EBITDA.
• A debit for reversal of a previous accounting gain is excluded only to the extent it relates to an amount that was itself an excluded intangibles credit.
• Certain intangible asset credits — such as those for revaluations, reversals of previous losses, and realisation gains — are excluded in whole or in part depending on whether they relate to previously excluded debits or credits, or where the asset's cost exceeds its tax written-down value.
• Credits arising from changes of accounting policy under sections 872 and 874 of CTA 2009 are excluded in full, mirroring the treatment of the corresponding debits.

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