This paragraph excludes intangible fixed assets to the extent they are held by a company for purposes that are:
Depending on the precise facts intangible assets held by a club or a society for recreational or similar purposes may well be excluded from Schedule 29 under one or both of these rules.
Schedule 29 does not attract as a matter of course the general
computational rules which apply for CT, such as that prohibiting
tax deductions for expenditure not incurred wholly and exclusively
for the purposes of a trade ICTA88/S74 (1)(a)). Paragraph 77(a)
fills the gap to the extent necessary.
Paragraph 77(a) contains nothing equivalent to the
requirement in Section 74(1)(a) that a purpose should be an
exclusive one. The test would normally be satisfied where for
example it is the commercially inspired practice of a group of
companies to centralise the holding of its intangible assets in one
group member, which then grants rights to use those assets to
fellow members, whether located in the UK or elsewhere.
See
CIRD48120 for the role of this
provision in countering tax avoidance.
