CIRD12755 - Core computational rules: deductible debits: relief for capitalised expenditure on an intangible asset: accounts-based relief: general



Where a company does not elect for fixed-rate relief (see CIRD12780), deductible debits for the depreciation of an asset within Part 8 are calculated by reference to sums written off that asset in its accounts by way of one of the following:

  • amortisation
  • impairment

See CIRD30140 onwards for a description of GAAP as it applies to the amortisation of intangible assets and impairment reviews.

The deductible debit for the purposes of Part 8 is the same as the sum written off that asset on a company’s accounts so long as both of the following apply:

  • the amortisation or impairment charge in the accounts is in accordance with GAAP (see CIRD30000 onwards)
  • there is no divergence between the value of an asset for the purposes of Part 8 and its accounting value (see CIRD12770)

Where there is such a divergence the deductible debit is calculated on a pro-rata basis. See CIRD12760 onwards.

Other relevant provisions

See CIRD12790 for the computation of deductible debits following the revaluation of an asset in the accounts (or the restoration of past losses).

See CIRD12795 for the computation of deductible debits following the part-realisation of an asset.