Degrouping: application of roll-over relief in relation to degrouping charge
65(1)Part 7 (roll-over relief in case of reinvestment) applies with the following modifications where a company is treated as having realised an asset by virtue of paragraph 58 or 60 (degrouping)—
(a)in paragraph 38 (conditions to be met in relation to the old asset), for the references to the old asset being a chargeable intangible asset in relation to the company substitute references to its being a chargeable intangible asset in relation to the transferor;
(b)in paragraph 39(1) (conditions to be met in relation to expenditure on other assets), for the references to the date of realisation of the old asset substitute references to—
(i)in a case within paragraph 58, the date on which the transferee ceased to be a member of the group, and
(ii)in a case within paragraph 60, the date on which the transferee ceased to satisfy the qualifying condition;
(c)references to the proceeds of realisation shall be read as references to the amount for which the transferee is treated as having realised the asset.
(2)A reduction of the deemed realisation proceeds as a result of a claim for relief under Part 7 does not affect the value at which the company is deemed to have reacquired the asset.
(3)In this paragraph “the transferee” and “the transferor” have the same meaning as in paragraph 58.