Section 727 — Corporation Tax Act 2009: References to expenditure on an asset

References to expenditure on an asset 727 1 References in this Part to expenditure on an asset are to any expenditure (including abortive expenditure)—

a for the purpose of acquiring or creating, or establishing title to, the asset, b by way of royalty in respect of the use of the asset, or c for the purpose of maintaining, preserving or enhancing, or defending title to, the asset.

2 No account may be taken of capital expenditure on tangible assets in determining for the purposes of this Part the amount of expenditure on an intangible asset.

3 In subsection (2) “ capital expenditure ” has the same meaning as in CAA 2001.

4 If expenditure is incurred partly as mentioned in subsection (1) or (2) and partly otherwise, any necessary apportionment must be made on a just and reasonable basis.