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 (see D1.611). It is specifically provided that an election can be made whether or not the asset is written
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:42