Part 8Intangible fixed assets
Chapter 9Application of this Part to groups of companies
Roll-over relief under Chapter 7 (realisation and reinvestment)
778Relief on reinvestment: acquisition of group company: introduction
(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.