Section 740 — Corporation Tax Act 2009: Abortive expenditure on realisation

Abortive expenditure on realisation 740 1 This section applies if—

a in a period of account a loss is recognised in determining the company's profit or loss in respect of expenditure by the company for the purposes of a transaction, b the transaction does not proceed to completion, but c were it completed, it would constitute a realisation of an intangible fixed asset.

2 A corresponding debit must be brought into account for tax purposes.

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

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