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For disposals made before 23 March 2011 the definition of non-licence consideration is consideration that does not consist of disposal of a UK licence, as determined at the time the swap arrangements are entered into.

For disposals made before 23 March 2011 a reference to the value of a licence comprised in disposal A or disposal B (see TCGA92\S195A) is a reference to the value of the licence as determined under the swap arrangements at the time the swap arrangements are entered into.

For later disposals, any determination:

• of the consideration given for disposal A or disposal B,
• of the non-licence consideration, or
• of the value of a licence comprised in disposal A or disposal B

is to be made as at the time the swap arrangements are entered into. However if, under the swap arrangements, economic benefits and liabilities under the licences concerned are treated as passing at a time (‘the effective time�) which falls before or after the day on which the arrangements are entered into, then any determination:

• of the consideration given for disposal A or disposal B,
• of the non-licence consideration, or
• of the value of a licence comprised in disposal A or disposal B

is to be made as at the effective time (TCGA92\S196(5E)).

However TCGA92\S196(5F) provides that if the swap arrangements make provision for an increase in the non-licence consideration to reflect the period between the effective time and the time it is payable, the non-licence consideration is to be treated as if it were the amount found by making a corresponding increase in the amount determined under TCGA92\S196(5E).

»Ê¹ÚÌåÓýapp reason for these changes (apart from TCGA92\S196(5F)) is that under swap arrangements companies generally reimburse expenditure incurred on or after the effective date. Under the definition of non-licence consideration that existed until FA2011, such reimbursement could fall within the definition of non-licence consideration.