(1)This section and section 891 apply for the purposes of this Chapter in relation to assets to which section 858 (treatment of fungible assets) applies.
(2)Section 858 applies as if—
(a)pre-FA 2002 assets, and
(b)intangible fixed assets that are not pre-FA 2002 assets,
were assets of different kinds.
(3)If section 858 applies (whether or not it is a case where subsection (2) has effect)—
(a)a single asset comprising pre-FA 2002 assets is treated as itself being a pre-FA 2002 asset, and
(b)a single asset comprising intangible fixed assets that are not pre-FA 2002 assets is treated as itself being an asset to which this Part applies.
(1)Subsection (2) applies if—
(a)a company realises a fungible asset, and
(b)apart from section 890(2), the asset would be treated as part of a single asset comprising both pre-FA 2002 assets and assets that are not pre-FA 2002 assets.
(2)The realisation is treated as diminishing the single asset of the company comprising pre-FA 2002 assets in priority to diminishing the single asset of the company comprising assets that are not pre-FA 2002 assets.
(3)Fungible assets acquired by a company that would not otherwise be treated as pre-FA 2002 assets are so treated so far as they are identified, in accordance with the following rules, with pre-FA 2002 assets realised by the company.
(4)Rule 1 is that assets acquired are identified with pre-FA 2002 assets of the same kind realised by the company within the period beginning 30 days before and ending 30 days after the date of the acquisition.
(5)The reference in subsection (4) to assets “of the same kind” is to assets that are, or but for section 890(2) would be, treated as part of a single asset because of section 858.
(6)Rule 2 is that assets realised earlier are identified before assets realised later.
(7)Rule 3 is that assets acquired earlier are identified before assets acquired later.
(8)In this section “fungible asset” means an intangible fixed asset to which section 858 applies.