Part 8Intangible fixed assets

Chapter 9Application of this Part to groups of companies

Transfers within a group treated as tax-neutral

775Transfers within a group

(1)

A transfer of an intangible fixed asset from one company (“the transferor”) to another company (“the transferee”) is tax-neutral for the purposes of this Part if—

(a)

at the time of the transfer both companies are members of the same group,

(b)

immediately before the transfer the asset is a chargeable intangible asset in relation to the transferor, and

(c)

immediately after the transfer the asset is a chargeable intangible asset in relation to the transferee.

(2)

For the consequences of a transfer being tax-neutral for the purposes of this Part, see section 776.

(3)

F1Part 4 of TIOPA 2010 (provision not at arm's length) does not apply in relation to a transfer to which subsection (1) applies.

(4)

Subsection (1) does not apply if—

(a)

the transferor or transferee is a qualifying society within the meaning of section 461A of ICTA (incorporated friendly societies entitled to exemption from tax), or

(b)

the transferee is a dual resident investing company within the meaning of F2section 949 of CTA 2010 (dual resident investing companies).