CIRD11505 - Intangible assets within FA02/SCH29: time test: general conditions: introduction

FA02/SCH29 PART14

Assets which, wholly or partly, satisfy the asset conditions described in CIRD11050 onwards need also to satisfy the time test described in the following paragraphs if Schedule 29 is to be of any application to them.

The thrust of the time test is to bring within the scope of Schedule 29 only those intangible fixed assets which:

• came into existence on or after 1 April 2002, or, if not
• were acquired directly or indirectly from independent parties after that date.

In other words, assets in existence prior to 1 April 2002 remain outside Schedule 29, and subject to the rest of the corporation tax code, so long as they remain within the same economic family.

This approach is subject to a number of exceptions, which are covered at CIRD11700 onwards.

‘Existing assets’

The legislation refers to intangible fixed assets that fail the general conditions of the time test as ‘existing assets’ (see FA02/SCH29/PARA118 (3)). But ‘existing assets’ as defined are not necessarily outside the scope of Schedule 29. They may come within Schedule 29 by virtue of falling within the exceptions to the general conditions outlined above. So telecommunications rights to which Schedule 29 applies by virtue of the rules mentioned in CIRD11740 remain ‘existing assets’.

Flow charts

There are explanatory flow-charts at CIRD11530.