Section 721 | Receipts recognised as they accrue

(1)If in a period of account a gain representing a receipt in respect of an intangible fixed asset is recognised in determining the company's profit or loss, a corresponding credit must be brought into account for tax purposes.

(2)The amount of the credit is the same as the amount of the gain recognised by the company for accounting purposes.

(3)Subsection (2) is subject to any adjustments required by this Part or Part 4 of TIOPA 2010 (provision not at arm's length).