Corporation Tax Act 2009

[F1 The special rules U.K.

Textual Amendments

F1 Pt. 8 Chs. 16A, 16B inserted (with effect in accordance with s. 31(14)(15) of the amending Act) by Finance Act 2020 (c. 14), s. 31(13)

900E Special rule: section 900B case U.K.

(1) This section applies in respect of a restricted asset of a company if it is a restricted asset by reason of section 900B.

(2) If the company was the first company to acquire the asset on or after 1 July 2020, the relevant Chapters of this Part have effect as if the company acquired the asset at no cost.

(3) If the company was not the first company to acquire the asset on or after 1 July 2020, the relevant Chapters of this Part have effect as if the company acquired the asset for the adjusted amount.

(4) The adjusted amount is—

where—

A is the amount of consideration—

(a)

for which the company actually acquired the asset, or

(b)

if different, for which it would (ignoring this section) be treated for the purposes of the Taxes Acts as having acquired the asset, and

B is the market value of the asset on the date it was first acquired by a company on or after 1 July 2020.

(5) Where B is greater than A the adjusted amount is nil.

(6) In this section—

• “market value”, in relation to an asset, means the price the asset might reasonably be expected to fetch on a sale in the open market, and

• “the relevant Chapters of this Part” means—

  (a)

  Chapter 3 (debits in respect of intangible fixed assets),

  (b)

  Chapter 15 (adjustments on change of accounting policy), and

  (c)

  Chapter 5 (calculation of tax written-down value) in so far as it has effect for the purposes of Chapters 3 and 15.

900F Special rule: section 900C or 900D case U.K.

(1) This section applies in respect of a restricted asset of a company if it is a restricted asset by reason of section 900C or 900D.

(2) The relevant Chapters of this Part have effect as if the company acquired the asset for the adjusted amount.

(3) The adjusted amount is calculated as follows—

• Step 1 Find the amount—

  (a)

  for which the company actually acquired the asset, or

  (b)

  if different, for which it would (ignoring this section) be treated for the purposes of the Taxes Acts as having acquired the asset.

• Step 2 Deduct from the amount found at Step 1 such proportion of the notional deduction amount for the relevant other asset or each relevant other asset as is just and reasonable in the circumstances.

(4) Where the deduction at Step 2 results in a negative value the adjusted amount is nil.

(5) In subsection (3)—

• “relevant other asset” means an asset by reference to which the conditions in paragraphs (c) and (d) of section 900C(2) or (as the case may be) the conditions in section 900D(2) were met, and

• “the notional deduction amount”, in relation to a relevant other asset, means—

  (a)

  in a case where section 900E(2) would have applied had the company acquired the relevant other asset instead of the restricted asset, an amount equal to the market value of the relevant other asset at the time the restricted asset was acquired, and

  (b)

  in a case where section 900E(3) would have applied had the company acquired the relevant other asset instead of the restricted asset, an amount equal to the market value of the relevant other asset at the time it was first acquired by a company on or after 1 July 2020, and

  (c)

  in a case where subsection (2) of this section would have applied had the company acquired the relevant other asset instead of the restricted asset, the amount that would have been deducted at step 2 of subsection (3) of this section if the company had acquired the relevant other asset instead of the restricted asset.

(6) In this section “market value” and “the relevant Chapters of this Part” have the same meaning as in section 900E.]