Section 900C — Corporation Tax Act 2009: When an intangible fixed asset is a restricted asset: the second case

When an intangible fixed asset is a restricted asset: the second case 900C 1 An intangible fixed asset of a company (“the asset concerned”) is a restricted asset if—

a the company acquired the asset concerned on or after 1 July 2020, b the company acquired the asset concerned from a person who at the time of the acquisition was a related party in relation to the company, and c the asset concerned is within subsection (2).

2 The asset concerned is within this subsection if—

a the asset concerned was created on or after 1 July 2020, b at no time has the asset concerned been the subject of a relieving acquisition, c the value of the asset concerned derives in whole or in part from another asset (“the other asset”),

and d the other asset was a pre-FA 2002 asset or a restricted asset in the hands of any company on the date the asset concerned was created.

3 The condition in subsection (2)(d) is to be treated as met if—

a the other asset was held by a person other than a company on the date the asset concerned was created, b on the date the asset concerned was created that person was a related party in relation to a company, and c the other asset would have been a pre-FA 2002 asset or a restricted asset in the hands of that company on the date the asset concerned was created had that company acquired the other asset from that person immediately before that date.

4 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.