899Relief where degrouping charge on asset arises on or after 1 April 2002U.K.
(1)This section applies if—
(a)a company is treated under section 179(3) or (6) of TCGA 1992 (degrouping charge) as having sold and reacquired a pre-FA 2002 asset, and
(b)under section 179(4) or (8) of that Act the gain is treated as accruing on or after 1 April 2002.
(2)Chapter 7 (roll-over relief in case of realisation and reinvestment) applies as specified in section 898(2) and with the additional modifications specified in subsections (3) to (5).
(3)In section 755 (conditions relating to the old asset and its realisation), for the references to the old asset being a chargeable intangible asset throughout the period during which it was held by the company substitute references to its being a chargeable asset within TCGA 1992 throughout the period during which it was held by the company referred to in section 179 of that Act as “company B”.
(4)In section 756(1) (conditions relating to expenditure on other assets), for the references to the date of realisation of the old asset substitute references—
(a)in a case within section 179(3) of TCGA 1992, to the time at which the gain is treated as accruing under section 179(4) of that Act, and
(b)in a case within subsection 179(6) of that Act, to the time at which the gain is treated as accruing under section 179(8) of that Act.
(5)For references to the proceeds of realisation substitute references to the amount of the consideration for which the company is treated under TCGA 1992 as having sold and reacquired the asset.
(6)For the meaning of “chargeable asset within TCGA 1992”, see section 900.
(7)Section 850 (part realisation involving related party: exclusion of roll-over relief) does not apply in a case where Chapter 7 applies because of this section.