147Expenditure and receipts treated as revenue in natureU.K.
(1)This section applies if, in accordance with generally accepted accounting practice, an amount in respect of—
(a)expenditure on the acquisition of a relevant telecommunication right, or
(b)a receipt from the disposal of a relevant telecommunication right,
is recognised in the accounts of a trade as an item in the calculation of profit or loss.
(2)The amount is treated for income tax purposes as an item of a revenue nature.
(3)“The acquisition of a relevant telecommunication right” includes—
(a)the extension of rights attached to a relevant telecommunication right, and
(b)if a relevant telecommunication right is subject to a derivative right, the cancellation or restriction of rights attached to the derivative right.
(4)“The disposal of a relevant telecommunication right” includes—
(a)the cancellation or restriction of rights attached to a relevant telecommunication right, and
(b)the granting of a derivative right or the extension of rights attached to a derivative right.