Section 885 — Corporation Tax Act 2009: Assets representing non-qualifying expenditure : time of creation

Assets representing non-qualifying expenditure : time of creation 885 1 This section—

a applies for the purposes of section 882 (application of this Part to assets created or acquired on or after 1 April 2002),

and b applies to an ... asset representing non-qualifying expenditure.

2 In this section “ non-qualifying expenditure ” means expenditure that under the law as it was before 1 April 2002 is not qualifying expenditure for the purposes of any allowance under CAA 2001.

3 If only part of the expenditure on the creation or acquisition of the asset is non-qualifying expenditure, this Part applies as if there were separate assets representing the non-qualifying expenditure and the other expenditure.

4 If this Part does not apply to the asset representing the non-qualifying expenditure, the alternative enactments also apply as if there were a separate asset representing that expenditure.

5 In subsection (4) “ the alternative enactments ” means the enactments that apply where this Part does not apply.

6 Any apportionment necessary for the purposes of subsection (3) or (4) must be made on a just and reasonable basis.

7 An asset to which this section applies is treated for the purposes of section 882 as created —

a before (and not on or after) 1 April 2002 in a case in which the asset in question was held at any time before that date by the company or a related party, and b on or after 1 April 2002 in any other case.