Core computational rules: deductible debits: relief for capitalised expenditure on an intangible asset: fixed rate relief: computation
The fixed rate deduction for an accounting period is then simply the lesser of:
- 4% of the tax cost (reduced proportionately where the accounting period is less than 12 months)
- the tax written down value of the asset at the beginning of the period (that is its tax cost reduced by the total of previous fixed rate deductions)
See CIRD12920 for the computation of deductible debits following the part-realisation of an asset.