778Relief on reinvestment: acquisition of group company: introductionU.K.
(1)Chapter 7 (roll-over relief in case of realisation and reinvestment) applies in accordance with section 779 if—
(a)a company (“A”) acquires a controlling interest in another company (“B”), and
(b)intangible fixed assets (“underlying assets”) are held by B or one or more other companies within subsection (2).
(2)A company is within this subsection if—
(a)it was not in the same group as A before the acquisition, and
(b)as a result of the acquisition it is in the same group as A immediately after it.
(3)For this purpose A acquires a controlling interest in B if—
(a)A and B are not in the same group,
(b)A acquires shares in B, and
(c)as a result of the acquisition A and B are in the same group immediately after the acquisition.
(4)A claim for relief under Chapter 7 made because of section 779 must be made jointly by A and the company or companies holding the underlying assets concerned.
(5)In this section and section 779 expressions that are defined for the purposes of Chapter 7 have the same meaning as in that Chapter.