Section 778 — Corporation Tax Act 2009: Relief on reinvestment: acquisition of group company: introduction

Relief on reinvestment: acquisition of group company: introduction 778 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.