Section 863 — Corporation Tax Act 2009: Asset becoming chargeable intangible asset

Asset becoming chargeable intangible asset 863 1 This section applies if an asset becomes a chargeable intangible asset in relation to a company—

a on the company becoming UK resident, b in the case of a company that is not UK resident, on the asset beginning to be held —

i for the purposes of a trade carried on by the company in the United Kingdom through a permanent establishment, ii for the purposes of a trade carried on by the company of dealing in or developing UK land, iii for the purposes of a UK property business carried on by the company, or iv for the purposes of enabling the company to generate other UK property income (within the meaning given by section 5(6)), or c on the asset ceasing to be held for the purposes of a mutual trade or business.

2 This Part applies as if—

a the company had acquired the asset immediately after it became a chargeable intangible asset in relation to the company, and b had done so for its accounting value at that time.

3 But subsection (2)(b) is subject to section 863A.