Commentary

D1.630A Part realisations of intangible assets

Corporate tax
Corporate tax | Commentary

D1.630A Part realisations of intangible assets

Corporate tax | Commentary

D1.630A Part realisations of intangible assets

Where there is a part realisation of an intangible asset, the amount deducted for tax purposes from realisation proceeds is a proportion only of the tax written down value or the cost of the asset, as the case may be1. The amount deducted is adjusted in proportion to the amount of the accounting value immediately before the realisation that is attributable to amount of the accounting value realised. Therefore the proportion that is applied to either tax written down value or cost is2:

(AVB – AVA) / AVB

where:

  1.  

    •     AVA is the accounting value immediately after the

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