Part 8Intangible fixed assets
Chapter 14Miscellaneous provisions
Values to be used in special cases
857Deemed market value acquisition: adjustment where nil accounting value
1
This section applies if—
a
a company is treated for the purposes of this Part as acquiring an asset at market value, but
b
the accounting value of the asset transferred is nil in the hands of the transferee.
2
In such a case any reference in this Part to—
a
the cost of the asset recognised for accounting purposes,
b
the accounting value of the asset, or
c
any loss recognised for accounting purposes in respect of capitalised expenditure on the asset,
is a reference to the cost, value or loss that would have been recognised if the asset had been acquired at market value.
3
If the asset is revalued, the revaluation is ignored.
4
In this section “revaluation” has the same meaning as in section 723 (see subsection (5) of that section) and “revalued” must be read accordingly.