Commentary

D1.628 Intangible debits—election for writing down at fixed rate

Corporate tax
Corporate tax | Commentary

D1.628 Intangible debits—election for writing down at fixed rate

Corporate tax | Commentary

D1.628 Intangible debits—election for writing down at fixed rate

A company may elect to write down the cost of an intangible fixed asset for tax purposes at a fixed rate1. The fixed rate is 4% of the cost of the asset recognised for tax purposes, or the remaining tax written-down value (see D1.630), if that is less2.

The 4% rate is proportionately reduced for accounting periods of less than 12 months3.

The 4% fixed rate election is particularly useful in circumstances where the company does not amortise its intangible assets for example where international accounting standards are used and the asset does not have a finite life

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