Section 147 | Expenditure and receipts treated as revenue in nature

(1)This section applies if, in accordance with generally accepted accounting practice, an amount in respect of—

(a)expenditure on the acquisition of a relevant telecommunication right, or

(b)a receipt from the disposal of a relevant telecommunication right,

is recognised in the accounts of a trade as an item in the calculation of profit or loss.

(2)The amount is treated for income tax purposes as an item of a revenue nature.

(3)“The acquisition of a relevant telecommunication right” includes—

(a)the extension of rights attached to a relevant telecommunication right, and

(b)if a relevant telecommunication right is subject to a derivative right, the cancellation or restriction of rights attached to the derivative right.

(4)“The disposal of a relevant telecommunication right” includes—

(a)the cancellation or restriction of rights attached to a relevant telecommunication right, and

(b)the granting of a derivative right or the extension of rights attached to a derivative right.