Commentary

D1.621 Intangible credits—receipts within profit and loss

Corporate tax
Corporate tax | Commentary

D1.621 Intangible credits—receipts within profit and loss

Corporate tax | Commentary

D1.621 Intangible credits—receipts within profit and loss

Where a gain representing a receipt in respect of an intangible fixed asset is recognised in determining a company's profit and loss, a corresponding credit is brought into account for tax purposes1. Subject to any adjustment required for tax purposes (see D1.614), the amount of the credit recognised for tax purposes is the same as the amount of the gain recognised for accounting purposes2.

Most receipts from intangible assets will fall to be taxed under this head, with the exception of proceeds from a realisation (see D1.630). Receipts include royalties, which are defined as

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