Corporation Tax Act 2010

[F1 Assets treated as pre-commencement assets U.K.

Textual Amendments

F1 Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1

357OM Assets whose value derives from pre-commencement assets U.K.

(1) This section applies if—

(a) on or after the commencement day a company (“the acquiring company”) acquires an intangible fixed asset (“the acquired asset”) from a person (“the transferor”),

(b) the acquired asset is created on or after the commencement day,

(c) the value of the acquired asset derives in whole or in part from any other asset (“the other asset”), and

(d) the other asset meets the pre-commencement status conditions.

(2) In the hands of the acquiring company the acquired asset is treated for the purposes of this Chapter as a pre-commencement asset so far as its value derives from the other asset.

(3) If only part of the value of the acquired asset derives from the other asset, this Chapter has effect as if there were separate assets representing the part that does so derive and the part that does not so derive.

(4) For the purposes of this section the cases in which the value of an asset may be derived from any other asset include any case where—

(a) assets have been merged or divided,

(b) assets have changed their nature, or

(c) rights or interests in or over assets have been created or extinguished.

(5) Section 357ON supplements this section.

357ON The pre-commencement status conditions U.K.

(1) For the purposes of section 357OM(1) the other asset meets the pre-commencement status conditions if—

(a) it was created before the commencement day, or

(b) on or after the commencement day the other asset has been a pre-commencement asset in the hands of the transferor or any other person.

(2) Any apportionment necessary for the purposes of section 357OM(3) must be made on a just and reasonable basis.

(3) Sections 357OH(4), 357OI and 357OJ (provisions explaining when assets are treated as created) apply for the purposes of section 357OM as they apply for the purposes of section 357OH(1).

(4) Expressions used in this section have the same meaning as in section 357OM.

357OO Assets acquired in connection with disposals of pre-commencement assets U.K.

(1) This section applies if—

(a) a person disposes of an asset which—

(i) in the case of an intangible fixed asset, is a pre-commencement asset, or

(ii) in the case of any other asset, was created before the commencement day, and

(b) a company acquires an intangible fixed asset directly or indirectly in consequence of the disposal or otherwise in connection with it.

(2) The acquired asset is treated for the purposes of this Chapter as a pre-commencement asset in the company's hands.

(3) For the purposes of this section a person “disposes of” an asset if—

(a) for the purposes of TCGA 1992, the person makes a part disposal of the asset or any other disposal of it,

(b) in the case of an intangible fixed asset, there is for the purposes of Part 8 of CTA 2009 a realisation of the asset, or

(c) the person grants a licence in respect of the asset.

(4) For the purposes of this section it does not matter whether—

(a) the asset that the person disposes of is the same asset as the acquired asset,

(b) the acquired asset is acquired at the time of the disposal, or

(c) the acquired asset is acquired by merging assets or otherwise.]