Finance Act 2016

52 Intangible fixed assets: pre-FA 2002 assets U.K.

(1) Chapter 16 of Part 8 of CTA 2009 (pre-FA 2002 assets) is amended as follows.

(2) In section 882 (application of Part 8 to assets created or acquired on or after 1 April 2002), after subsection (5) insert—

“(5A) References in this section to one person being (or not being) a related party in relation to another person are to be read as including references to the participation condition being met (or, as the case may be, not met) as between those persons.

(5B) References in subsection (5A) to a person include a firm in a case where, for section 1259 purposes, references in this section to a company are read as references to the firm.

(5C) In subsection (5B) “section 1259 purposes” means the purposes of determining under section 1259 the amount of profits or losses to be allocated to a partner in a firm.

(5D) Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (5A) as it applies for the purposes of section 147(1)(b) of TIOPA 2010.”

(3) In section 894 (preserved status condition etc), after subsection (6) insert—

“(6A) Section 882(5A) to (5D) applies for the purposes of section 893 and this section.”

(4) In section 895 (assets acquired in connection with disposals of pre-FA 2002 assets), at the end insert—

“(5) Section 882(5A) to (5D) applies for the purposes of this section.”

(5) The amendments made by this section have effect in relation to accounting periods beginning on or after 25 November 2015.

(6) For the purposes of subsection (5), an accounting period beginning before and ending on or after 25 November 2015 is to be treated as if so much of the accounting period as falls before that date, and so much of the accounting period as falls on or after that date, were separate accounting periods.

(7) An apportionment for the purposes of subsection (6) must be made—

(a) in accordance with section 1172 of CTA 2010 (time basis), or

(b) if that method produces a result that is unjust or unreasonable, on a just and reasonable basis.