Part 8Intangible fixed assets

Chapter 9Application of this Part to groups of companies

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

778Relief on reinvestment: acquisition of group company: introduction

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.