Section 893 — Corporation Tax Act 2009: Assets whose value derives from pre-FA 2002 assets

Assets whose value derives from pre-FA 2002 assets 893 1 This section applies if—

a during the period beginning with 1 April 2002 and ending with 30 June 2020 a company (“ the acquiring company ”) acquires an intangible fixed asset (“the acquired asset”) from a person (“ the transferor ”),

b the acquired asset is created on or after 1 April 2002, c at the time of the acquisition the transferor and the acquiring company are related parties, d the value of the acquired asset derives in whole or in part from any other asset (“the other asset”),

and e the other asset meets the preserved status conditions (see section 894).

2 In the hands of the acquiring company the acquired asset is treated for the purposes of this Part as a pre-FA 2002 asset so far as its value derives from the other asset.

3 If only part of the value of the acquired asset derives from the other asset—

a this Part applies as if there were a separate asset representing the part of the value that does not so derive, and b the alternative enactments apply as if there were a separate asset representing the part of the value that does so derive.

4 In subsection (3) “ the alternative enactments ” means the enactments that apply where this Part does not apply.

5 For the purposes of this section the cases in which the value of an asset may be derived from any other asset include any case where—

a assets have been merged or divided, b assets have changed their nature, or c rights or interests in or over assets have been created or extinguished.

6 Section 894 supplements this section.