Section 755 — Corporation Tax Act 2009: Conditions relating to the old asset and its realisation

Conditions relating to the old asset and its realisation 755 1 The old asset must have been a chargeable intangible asset of the company throughout the period during which it was held by the company (but see subsection (5)).

2 The proceeds of realisation of the old asset must exceed—

a the cost of the asset, b in the case of a part realisation, the appropriate proportion of the cost of the asset (see section 759(1) and (2)), or c in the case of the realisation of an asset that has previously been the subject of a part realisation, the adjusted cost of the asset (see section 759(3)).

3 In subsection (2) “ the cost of the asset ” means the total capitalised expenditure on the asset recognised for tax purposes.

4 The condition in subsection (2) is met if the old asset has no cost as defined in subsection (3).

5 Subsection (6) applies if the old asset was a chargeable intangible asset of the company—

a at the time of its realisation, and b for a substantial proportion of the period during which it was held by the company, but not for the whole of that period.

6 The same proportion of the asset is treated for the purposes of this Chapter as if it were a separate asset in relation to which the condition in subsection (1) was wholly met.

7 Any apportionment necessary for the purposes of subsections (5) and (6) must be made on a just and reasonable basis.