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Amendment of section 291A of Principal Act (intangible assets)
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43. (1) Section 291A of the Principal Act is amended—
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(a) in subsection (6)—
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(i) in paragraph (a), by the substitution of the following subparagraph for subparagraph (i):
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“(i) any allowances to be made to a company under section 284 as applied by this section, and any balancing allowances (within the meaning of section 288) to be made to a company in respect of a specified intangible asset or specified intangible assets, and”,
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and
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(ii) in paragraph (b)—
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(I) in subparagraph (i), by the substitution of “in this subparagraph and subparagraph (ia)” for “in this subparagraph”, and
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(II) by the insertion of the following subparagraph after subparagraph (i):
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“(ia) Notwithstanding that the excess amount remains unallowed for an accounting period and shall be carried forward and treated as an allowance within the meaning of paragraph (a)(i) for the succeeding accounting period in accordance with subparagraph (i), for all other purposes of this Part the excess amount shall be treated as an allowance that has been made in the first accounting period for which it remains unallowed.”,
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(b) in subsection (8)(a), by the deletion of “under section 284 as applied by this section”, and
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(c) in subsection (9)—
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(i) in paragraph (a), by the substitution of “Subject to paragraphs (b) and (c), this section shall not apply” for “This section shall not apply”,
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(ii) by the substitution of the following paragraph for paragraph (b):
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“(b) Where, in relation to an acquisition referred to in paragraph (a)—
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(i) the transferor and transferee make a joint election under section 615(4) or 617(4), and
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(ii) the acquisition does not occur on a transfer to which section 400(6) applies,
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the transferee shall be entitled to claim an allowance under section 284 as applied by this section in respect of capital expenditure incurred by it on acquiring the specified intangible asset from the transferor.”,
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and
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(iii) by the insertion of the following paragraph after paragraph (b):
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“(c) Where an acquisition referred to in paragraph (a) occurs on a transfer to which section 400(6) applies, the transferee shall be entitled to claim allowances under section 284 as applied by this section in respect of the specified intangible asset in accordance with section 400(6).”.
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(2) (a) Paragraph (a)(i) of subsection (1) applies as respects any event referred to in section 288(1) of the Principal Act which occurs on or after 8 October 2025.
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(b) Paragraphs (a)(ii), (b) and (c) of subsection (1) shall have effect for accounting periods commencing on or after 1 January 2026.
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