Dealing with IFAs - General principles

1. [Amounts deductible in line with accounting treatment](https://library.croneri.co.uk/po-heading-id_qbjrgg0oT0iPzAcowYsfdg)

1.1. Expenditure written off as incurred

1.2. Amortisation or impairment of capitalised expenditure in line with accounting treatment

1.3. 4% of capitalised expenditure p.a. by election

1.4. Reversal of prior taxable accounting credits

1.5. Abortive realisation costs

1.6. Goodwill & customer-related intangibles excluded

1.7. No/limited amortisation relief for restricted assets

1.8. Pre-FA 2002 assets - rules after 1 July 2020

2. [Related parties](https://library.croneri.co.uk/po-heading-id_tdpGQpfP-UWBM4Xn-49OSA)

2.1. Market value transfers (broadly) between "related parties"

3. [Reliefs](https://library.croneri.co.uk/po-heading-id_N8gpFwNcTU6g9FAwDuJTPA)

3.1. Reinvestment (roll-over) relief

3.2. Reconstructions

4. [Anti-avoidance](https://library.croneri.co.uk/po-heading-id_77P1QYb6pkmsgL-E-tXnEg)

4.1. General anti-avoidance rule applies

5. [Amounts taxable in line with accounting treatment](https://library.croneri.co.uk/po-heading-id_qbjrgg0oT0iPzAcowYsfdg)

5.1. Receipts recognised in income statement as they accrue

5.2. Upward accounting revaluations but not above original cost

5.3. Negative goodwill

5.4. Reversal of prior deductible accounting debits

6. [Intangibles within scope of the rules](https://library.croneri.co.uk/po-heading-id_2Sme1HDtIE-fcTktO3QFZw)

6.1. Created on or after 1 April 2002

6.2. Acquired from an unrelated party (not necessarily a company) between 1 April 2002 and 30 June 2020

6.3. Acquired from a related party company between 1 April 2002 and 30 June 2020 where the asset is an IFA asset in the hands of the related party

6.4. Acquired from a related party (not necessarily a company) between 1 April 2002 and 30 June 2020 where the asset was acquired by the related party (the intermediary) on or after 1 April 2002 from a third person who is neither a related party of the intermediary nor the acquiring company

6.5. Acquired by the company from a related party (not necessarily a company) between 1 April 2002 and 30 June 2020 where the asset was created by any person on or after 1 April 2002

6.6. Acquired by the company on or after 1 July 2020

6.7. Held immediately before 1 July 2020 by the company, and at 1 July 2020 the company was not subject to corporation tax

7. [Amounts taxable on a realisation](https://library.croneri.co.uk/po-heading-id_9csN7AVE_U-MMpzS17aH1g)

7.1. Assets written down for tax purposes

7.1.1. Excess accounting credits over TWDV are taxable

7.1.2. Deficit of accounting credits in relation to TWDV is deductible

7.2. Assets not written down for tax purposes

7.2.1. Excess accounting credits over cost are taxable

7.2.2. Deficit of accounting credits in relation to cost is deductible

7.3. Goodwill and customer-related intangibles

7.4. Expenditure incurred on restricted assets deductible subject to market value rules etc

8. Groups

8.1. [De-grouping charges](https://library.croneri.co.uk/po-heading-id_s1KSuG9tZkeSLV4NEDPNuA)

8.2. [Tax neutral transfers within a group](https://library.croneri.co.uk/po-heading-id_ypfaA0cIPUujZtL_S8eXjQ)

9. [Pre-FA 2002 assets - rules after 1 July 2020](https://library.croneri.co.uk/po-heading-id_qbjrgg0oT0iPzAcowYsfdg)

9.1. Asset created or acquired pre 1 April 2002 and owned by the same company on and after 1 July 2020 - outside the regime (Pre-FA 2002 asset)

9.2. Pre-FA 2002 Asset transferred within CGT group post 1 July 2020- remains outside the regime

9.3. Pre-FA 2002 Asset otherwise transferred to related party company after 1 July 2020 - in the regime but restricted asset. Note assets being transferred into the UK - not treated as pre-FA 2002 assets, will not be restricted.

9.4. Asset created by individual, partnership etc pre 1 April 2002 and transferred to related company post 1 July 2020 - in regime but restricted asset

9.5. Assets derived from pre-FA 2002 assets and held by related parties post 1 July 2020 - will usually be restricted assets.