Section 728 — Corporation Tax Act 2009: Expenditure written off as it is incurred

Expenditure written off as it is incurred 728 1 If in a period of account expenditure on an intangible fixed asset is recognised in determining a company's profit or loss, a corresponding debit must be brought into account for tax purposes.

2 The amount of the debit recognised for tax purposes is the same as the amount of the loss recognised by the company for accounting purposes.

3 Subsection (2) is subject to any adjustments required by this Part or Part 4 of TIOPA 2010 (provision not at arm's length).

4 This section does not apply if the loss represents previously capitalised expenditure.

5 Nothing in section 59 (patent royalties) prevents a debit from being brought into account in accordance with this section, and so given effect under Chapter 6 of this Part.