PRT: transfer of licence interests - net profit period
Net Profit Period, FA81\S112
In determining the new participator’s net profit period (FA81\S111, see OT12650) following a transfer of a field interest, one must take the earlier of:
- Its own net profit period (on the assumption that all (or an appropriate part in the case of a part-transfer) of the old participator’s (OP) assessable profits and allowable losses had been its own), and
- OP’s net profit period or, if there are several OPs, the earliest of their net profit periods.
On a part transfer, OP’s net profit period is recalculated, following the transfer to NP of part of its assessable profits and allowable losses.
If NP were already a participator and had reached its net profit period in relation to its original interest in a chargeable period before it acquired OP’s interest, then the timing of OP’s net profit period is ignored (FA81\S112(5)).