Commentary on Sections Overview Chapter 3: Debits in respect of intangible fixed assets Section 730: Writing down at fixed rate: election for fixed-rate basis
2004.This section gives the option of a writing down deduction at a fixed rate, regardless of the accounting treatment of the intangible fixed asset. It is based on paragraph 10 of Schedule 29 to FA 2002.
2005.The main purpose of this option is to make relief available for the cost of acquiring the most durable of intangible assets which either are not amortised at all in the accounts or are amortised over a very long period. An example of such an asset could be a very strong brand name.