Commentary on Sections Overview Chapter 4: Realisation of intangible fixed assets Section 740: Abortive expenditure on realisation
2024.This section provides for a debit for tax purposes in respect of abortive realisation expenditure. It is based on paragraph 26 of Schedule 29 to FA 2002.
2025.“Abortive” expenditure is expenditure incurred for the purposes of a transaction which would have amounted to a realisation of the intangible fixed asset if it had proceeded to completion. Such expenditure would not be allowable under any other rules.