Commentary on Sections Overview Overview Section 876: Original asset subject to fixed-rate writing down
2229.This section ensures the calculation rules work properly when a change of accounting policy results in an intangible fixed asset that was subject to a fixed-rate writing down election under section 730 being treated as two or more assets. It is based on paragraph 116D of Schedule 29 to FA 2002.
2230.It gives rules:
	to apportion the former tax written-down value of the original intangible fixed asset to each disaggregated asset on the basis of the ratio of their new accounting values; and
	to determine how written-down value and cost recognised for tax purposes will be identified subsequently.
2231.The election under section 730 in respect of the original intangible fixed asset applies to that asset for the period prior to the change and to each of the disaggregated assets subsequently.