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HMRC internal manual

Corporate Intangibles Research and Development Manual

Intangible assets within CTA09/PART8: FA02 rule exceptions: assets already within income regime: certain telecommunications assets



FA00/SCH23 (now ITTOIA/PART2/CHAPTER10) introduced a tax regime for certain telecommunications assets as defined in that legislation, that is in outline some wireless telegraphy licences and IRUs. See CIRD70110.

A licence or right within ITTOIA/PART2 falls within the definition of an intangible fixed asset for the purposes of CTA09/PART8 (see CIRD11100 onwards). Furthermore, the computational rules in Part 2 (bringing the assets into an accounts-based income regime) are essentially similar to those in Part 8.


Section 897 of Part 8 therefore provides that Part 8 applies:

  • to assets within Part 2 even though they fail the general conditions of the FA02 rule (normally because they were held by the company prior to 1 April 2002);
  • for accounting periods ending on or after 1 April 2002 (including that part of the first accounting period to which Part 8 applies which is before 1 April 2002) and subsequent periods.

Amounts brought to account for tax under Part 2 for earlier periods, for example in respect of the amortisation of Part 2 assets, are treated as having been brought into account under Part 8. See also CIRD70705.

Assets excluded

Part 2, and therefore Part 8, does not apply to:

  • IRUs acquired by the company in question before 21 March 2000;
  • IRUs acquired afterwards but acquired (directly or indirectly) from an associated company that acquired the asset before that date.

See CIRD70600.