Part 8Intangible fixed assets

Chapter 16Pre-FA 2002 assets etc

General rule

882Application of this Part to assets created or acquired on or after 1 April 2002

(1)

The general rule is that this Part applies only to intangible fixed assets of a company (“the company”) that—

(a)

are created by the company on or after 1 April 2002,

(b)

are acquired by the company on or after that date from a person who at the time of the acquisition is not a related party in relation to the company, or

(c)

are acquired by the company on or after that date in case A, B or C from a person who at the time of the acquisition is a related party in relation to the company.

(2)

For provisions explaining when assets are treated as created or acquired, see sections 883 to 889.

(3)

Case A is where the asset is acquired from a company in relation to which the asset was a chargeable intangible asset immediately before the acquisition.

(4)

Case B is where the asset is acquired from a person (“the intermediary”) who acquired the asset on or after 1 April 2002 from a third person—

(a)

who was not at the time of the intermediary's acquisition a related party in relation—

(i)

to the intermediary, or

(ii)

if the intermediary was not a company, to a company in relation to which the intermediary was a related party, and

(b)

who is not, at the time of the acquisition by the company, a related party in relation to the company.

(5)

Case C is where the asset was created on or after 1 April 2002 by the person from whom it is acquired or any other person.

(6)

The general rule in subsection (1) is subject to—

(a)

section 890 (fungible assets: application of section 858),

(b)

section 892 (certain assets acquired on transfer of a business),

(c)

section 893 (assets whose value derives from pre-FA 2002 assets),

(d)

section 895 (assets acquired in connection with disposals of pre-FA 2002 assets),

(e)

section 897 (application to pre-FA 2002 assets consisting of telecommunication rights),

(f)

sections 898 and 899 (application of roll-over relief in relation to some pre-FA 2002 assets), and

(g)

section 905 (pre-FA 2002 assets: Lloyd's syndicate capacity).

(7)

This section does not restrict the application of this Part in accordance with section 896 (application to royalties) (but see section 896(3)).