The rules in FA00/SCH23 cease to apply for the purposes of CT
for accounting periods ending on or after 1 April 2002 and are
superseded by the rules in FA02/SCH29. However, FA00/SCH23
continues to apply for the purposes of income tax.
For accounting periods ending on or after 1 April 2002 the
rules in FA02 will apply to the licences and rights to which the
rules in FA00 applied as if the amounts brought into account for
tax purposes under FA00/SCH23 had been brought into account under
FA02/SCH29. See
CIRD11740.
Genova Ltd acquired an IRU on 1 April 2001 for £5 million.
In the accounting period ended 31 March 2002 it amortised the costs
by £500,000 and was allowed a deduction of that amount under
FA00/SCH23.
On 1 April 2002 it disposed of the IRU for £4.75
million. A gain on disposal of £250,000 is recognised in the
profit and loss account for the period ended 31 March 2003 and
taxed under FA02/SCH29.
