CIRD11505 - Intangible assets within CTA09/PART8: FA02 rule: general conditions: introduction

CTA09/PART8 CHAPTER 16

Assets which, wholly or partly, satisfy the asset conditions described in CIRD11050 onwards need also to satisfy the FA02 rule described in the following paragraphs if Part 8 is to be of any application to them.

The thrust of the FA02 rule is to bring within the scope of Part 8 only those intangible fixed assets which:

• are ‘created’, for the purposes of Part 8, on or after 1 April 2002, or, if not
• are ‘acquired’, for the purposes of Part 8, directly or indirectly from unrelated parties after that date.

Any other intangible fixed assets are outside Part 8, and subject to the rest of the corporation tax code. In particular, all assets in existence prior to 1 April 2002 remain outside Part 8 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.

‘Pre-FA 2002 assets’

The legislation refers to intangible fixed assets that fail the general conditions of the FA02 rule as ‘pre-FA 2002 assets’ (see CTA09/PART8/S881). But ‘pre-FA 2002 assets’ as defined are not necessarily outside the scope of Part 8. They may come within Part 8 by virtue of falling within the exceptions to the general conditions outlined above. So telecommunications rights to which Part 8 applies by virtue of the rules mentioned in CIRD11740 remain ‘pre-FA 2002 assets’.

Flow charts

There are explanatory flow-charts at CIRD11530.