CIRD10220 - Intangible assets: introduction: fungible assets

Some assets are of a type that can be dealt in without identifying the particular assets involved. Examples would include some agricultural production rights arising from EU rules, such as milk quota. A holding of a number of identical units of a fungible asset count as a single asset for the purposes of the new rules.

There are special commencement rules for fungible assets to ensure that additional units of a type of asset already held at 1 April 2002 can come within the new regime, in spite of the general rule mentioned above, and to counter attempts to turn existing assets outside the new rules into assets within the rules by sale and repurchase. See CIRD11760 onwards.