Section 895 — Corporation Tax Act 2009: Assets acquired in connection with disposals of pre-FA 2002 assets

Assets acquired in connection with disposals of pre-FA 2002 assets 895 1 This section applies if—

a a person disposes of an asset which is a pre-FA 2002 asset in the person's hands at the time of the disposal, b at any time before 1 July 2020 a company acquires an intangible fixed asset directly or indirectly in consequence of the disposal or otherwise in connection with it, c the company and the person are related parties at the time of the disposal, and d the acquired asset would be a chargeable intangible asset in the hands of the company at the time of the acquisition apart from this section.

2 The acquired asset is treated for the purposes of this Part as a pre-FA 2002 asset in the company's hands.

3 For the purposes of this section—

a “ asset ”, in relation to any disposal, means any asset for the purposes of TCGA 1992, b a person “disposes of” an asset if, for the purposes of that Act, the person makes a part disposal of the asset or any other disposal of it, and c the time at which a disposal of an asset is made is the time at which it is made for the purposes of that Act.

4 For the purposes of this section it does not matter whether—

a the asset that the person disposes of is the same asset as the acquired asset, b the acquired asset is acquired at the time of the disposal, or c the acquired asset is acquired by merging assets or otherwise.

5 Section 882(5A) to (5D) applies for the purposes of this section.