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HMRC internal manual

Corporate Intangibles Research and Development Manual

HM Revenue & Customs
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Intangible assets within CTA09/PART8: FA02 rule: introduction

CTA09/PART8 CHAPTER 16 {#IDAOGWCB} - Introduction

Assets which, wholly or partly, satisfy the asset conditions described in CIRD11050 onwards also need to satisfy the FA02 rule as described CIRD11520-11650 if Part 8 is to be of any application to them. This general rule is subject to a number of exceptions. These are covered at CIRD11700 onwards.

The thrust of the FA02 rule is to bring within the scope of Part 8 only those intangible fixed assets that are treated as:

  • ‘created’ on or after 1 April 2002, or, if not
  • ‘acquired’ directly or indirectly from unrelated parties after that date.

As to when assets are ‘created’ or ‘acquired’ for the purposes of Part 8, this is governed by S883-889 (see CIRD11665-11690).

Intangible fixed assets that do not satisfy the FA02 rule are generally outside Part 8 and subject to other parts of the corporation tax code. The exceptions are covered at CIRD11700 onwards. In particular, the FA02 rule means all assets in existence prior to 1 April 2002 remain outside Part 8 while they held within the same economic family.


‘Pre-FA 2002 assets’

The legislation refers to intangible fixed assets that fail the general conditions of the FA02 rule as ‘pre-FA 2002 assets’ (see S881). Some ‘pre-FA 2002 assets’ may still come within Part 8 where they are within the exceptions to the general conditions outlined above. For example some telecommunications rights are ‘pre-FA 2002 assets’, but Part 8 applies to them by virtue of the rules mentioned in CIRD11740.

Note that the term ‘pre-FA 2002’ replaces the Schedule 29 FA2002 term ‘existing assets’ (see FA02/SCH29/PARA118(3)).


Flow charts

There are explanatory flow-charts at CIRD11530.