Assets acquired in connection with disposals of existing assets treated as existing assetsU.K.
[F1127B(1)This paragraph applies where—
(a)a person disposes of an asset which, at the time of the disposal, is an existing asset in the hands of the person,
(b)a company which at the time of the disposal is a related party in relation to the person acquires an intangible fixed asset directly or indirectly in consequence of, or otherwise in connection with, the disposal, and
(c)the intangible fixed asset that is acquired would, apart from this paragraph, at the time of the acquisition be a chargeable intangible asset in the hands of the company.
(2)Where this paragraph applies the intangible fixed asset that is acquired shall be treated for the purposes of this Schedule as an existing asset in the hands of the company.
(3)For the purposes of this paragraph—
(a)“asset”, in relation to any disposal, means any asset for the purposes of the Taxation of Chargeable Gains Act 1992,
(b)a person “disposes of” an asset if, for the purposes of that Act, the person makes a part disposal of the asset or any other disposal of the asset,
(c)the time at which a disposal of an asset is made is the time at which it is made for the purposes of that Act.
(4)For the purposes of this paragraph it does not matter—
(a)whether the asset that the person disposes of is the same asset as the one that the company acquires,
(b)whether the asset that is acquired is acquired at the time of the disposal or at any other time, or
(c)whether the asset that is acquired is acquired by merging two or more assets or is acquired in any other way.]
Textual Amendments
F1Sch. 29 paras. 127A, 127B inserted (with effect in accordance with s. 77(10)(11) of the amending Act) by Finance Act 2006 (c. 25), s. 77(8)