Commentary on Sections Overview Chapter 4: Realisation of intangible fixed assets Section 734: Meaning of “realisation”
2012.This section defines “realisation”. It is based on paragraph 19 of Schedule 29 to FA 2002.
2013.Consistent with the underlying principle of this Part, “realisation” is defined by reference to generally accepted accounting practice. Only events which are “realisations” in these terms are within this Chapter. And only events within this Chapter can come within the roll-over rules in Chapter 7 of this Part.
2014.Subsection (3) is relevant to assets that have been wholly written off or to assets which have been generated internally (such as goodwill) which cannot be capitalised under generally accepted accounting practice.