Section 777 — Corporation Tax Act 2009: Relief on realisation and reinvestment: application to group member

Relief on realisation and reinvestment: application to group member 777 1 This section deals with the application of Chapter 7 (roll-over relief in case of realisation and reinvestment) in relation to a company that is a member of a group.

2 Chapter 7 does not apply if the expenditure on other assets is expenditure on the acquisition of assets from another member of the same group by a tax-neutral transfer.

3 Chapter 7 applies as if two companies (“ A ” and “ B ”) are the same person if—

a the realisation of the old asset is by A, b at the time of the realisation A is a member of a group, c the expenditure on other assets is by B, d B is a member of the same group as A at the time the expenditure is incurred (“the expenditure time”),

e B is not a dual resident investing company within the meaning of section 949 of CTA 2010 (dual resident investing companies) at the expenditure time, f immediately after the expenditure time the other assets are chargeable intangible assets in relation to B, and g both A and B make a claim for relief under Chapter 7.

4 Expressions used in this section that are defined for the purposes of Chapter 7 have the same meaning in this section.

5 In particular, see section 754 for the meaning of “the old asset” and “the other assets”.