Section 735 — Corporation Tax Act 2009: Asset written down for tax purposes

Asset written down for tax purposes 735 1 This section applies if there is a realisation of an intangible fixed asset in respect of which debits have been brought into account for tax purposes.

2 If the proceeds of realisation exceed the tax written-down value of the asset, a credit equal to the excess must be brought into account for tax purposes.

3 If the proceeds of realisation are less than the tax written-down value of the asset, a debit equal to the shortfall must be brought into account for tax purposes.

4 If there are no proceeds of realisation, a debit equal to the tax written-down value must be brought into account for tax purposes.

5 References in this section to the tax written-down value of an asset are to its tax written-down value immediately before the realisation.