Section 791 — Corporation Tax Act 2009: Application of roll-over relief in relation to degrouping charge

Application of roll-over relief in relation to degrouping charge 791 1 Chapter 7 (roll-over relief in case of realisation and reinvestment) applies with the modifications specified in subsections (2) to (4) if a company is treated as having realised an asset as a result of section 780 or 785 (degrouping).

2 In section 755 (conditions relating to the old asset), for the references to the old asset being a chargeable intangible asset in relation to the company substitute references to its being a chargeable intangible asset in relation to the transferor.

3 In section 756(1) (conditions relating to expenditure on other assets), for the references to the date of realisation of the old asset substitute—

a in a case within section 780, references to the date on which the transferee ceased to be a member of the group, and b in a case within section 785, references to the date on which the transferee ceased to meet the qualifying condition.

4 For references in Chapter 7 to the proceeds of realisation substitute references to the amount for which the transferee is treated as having realised the asset.

5 A reduction of that amount as a result of a claim for relief under Chapter 7 does not affect the value at which the company is treated as having reacquired the asset.

6 In this section “ the transferee ” and “ the transferor ” have the same meaning as in section 780.