Search Legislation

Corporation Tax Act 2009

Changes over time for: Cross Heading: Roll-over relief under Chapter 7 (realisation and reinvestment)

 Help about opening options

Changes to legislation:

There are outstanding changes not yet made by the legislation.gov.uk editorial team to Corporation Tax Act 2009. Any changes that have already been made by the team appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

Roll-over relief under Chapter 7 (realisation and reinvestment)U.K.

777Relief on realisation and reinvestment: application to group memberU.K.

(1)This section deals with the application of Chapter 7 (roll-over relief in case of realisation and reinvestment) in relation to a company that is a member of a group.

(2)Chapter 7 does not apply if the expenditure on other assets is expenditure on the acquisition of assets from another member of the same group by a tax-neutral transfer.

(3)Chapter 7 applies as if two companies (“A” and “B”) are the same person if—

(a)the realisation of the old asset is by A,

(b)at the time of the realisation A is a member of a group,

(c)the expenditure on other assets is by B,

(d)B is a member of the same group as A at the time the expenditure is incurred (“the expenditure time”),

(e)B is not a dual resident investing company within the meaning of [F1section 949 of CTA 2010 (dual resident investing companies)] at the expenditure time,

(f)immediately after the expenditure time the other assets are chargeable intangible assets in relation to B, and

(g)both A and B make a claim for relief under Chapter 7.

(4)Expressions used in this section that are defined for the purposes of Chapter 7 have the same meaning in this section.

(5)In particular, see section 754 for the meaning of “the old asset” and “the other assets”.

Textual Amendments

F1Words in s. 777(3)(e) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 649 (with Sch. 2)

778Relief on reinvestment: acquisition of group company: introductionU.K.

(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.

779Rules that apply to cases within section 778(1)U.K.

(1)The expenditure by A on the acquisition is treated as expenditure on acquiring the underlying assets.

(2)The amount of the expenditure so treated is taken to be the lower of—

(a)the tax written-down value of the underlying assets immediately before the acquisition, and

(b)the amount or value of the consideration for the acquisition.

(3)The requirement in section 756(3) (that immediately after the expenditure on acquiring the assets is incurred the assets must be chargeable intangible assets in relation to A) is treated as met in relation to the underlying assets if the condition in subsection (4) is met.

(4)That condition is that the underlying assets are chargeable intangible assets in relation to the company by which they are held immediately after the acquisition by A.

(5)The tax written-down value of the underlying assets in the hands of the company by which they are held is reduced by the amount available for relief (but see subsections (6) and (7)).

(6)If—

(a)there is more than one underlying asset, and

(b)the amount of expenditure on other assets that is treated as incurred exceeds the amount available for relief,

the company which holds the underlying assets may decide how the amount available for relief is to be allocated in reducing the tax written-down values of the assets.

(7)If there are two or more such companies, they may agree between them how that amount is to be allocated.

(8)In this section references to “A” and “B” and “underlying assets” must be read in accordance with section 778(1).

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources