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.
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.