Responding to representations received since the Budget an extension of the tax relief for mobile phone spectrum licences and the cost of acquiring capacity on telecommunications cables, Indefeasible Rights of Use (IRUs), has been decided.
The Inland Revenue Budget Note REVBN2E announced that the relief would be available for the cost of buying capacity in submarine telecommunications cables on or after 21 March 2000, and for the third generation mobile telecommunication spectrum licences.
The relief will now extend to all IRUs in telecommunications cable systems which are acquired from third parties on or after 21 March 2000, and to all licences auctioned in accordance with Section 3 of the Wireless Telegraphy Act 1998.
The relief will be spread over the life of the acquisition and will be legislated for in this year’s Finance Bill.
NOTES FOR EDITORS
The details of the tax relief are the same as in REVBN2E. It simply applies to a wider category of IRUs and telecommunications licences.