Corporation Tax Act 2009

777Relief on realisation and reinvestment: application to group memberU.K.
This section has no associated Explanatory Notes

(1)This section deals with the application of Chapter 7 (roll-over relief in case of realisation and reinvestment) in relation to a company that is a member of a group.

(2)Chapter 7 does not apply if the expenditure on other assets is expenditure on the acquisition of assets from another member of the same group by a tax-neutral transfer.

(3)Chapter 7 applies as if two companies (“A” and “B”) are the same person if—

(a)the realisation of the old asset is by A,

(b)at the time of the realisation A is a member of a group,

(c)the expenditure on other assets is by B,

(d)B is a member of the same group as A at the time the expenditure is incurred (“the expenditure time”),

(e)B is not a dual resident investing company within the meaning of [F1section 949 of CTA 2010 (dual resident investing companies)] at the expenditure time,

(f)immediately after the expenditure time the other assets are chargeable intangible assets in relation to B, and

(g)both A and B make a claim for relief under Chapter 7.

(4)Expressions used in this section that are defined for the purposes of Chapter 7 have the same meaning in this section.

(5)In particular, see section 754 for the meaning of “the old asset” and “the other assets”.

Textual Amendments

F1Words in s. 777(3)(e) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 649 (with Sch. 2)