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

When an intangible fixed asset is a restricted asset: the third case 900D 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, and b the asset concerned is within subsection (2).

2 The asset concerned is within this subsection if—

a the asset concerned was acquired by any company on or after 1 July 2020 directly or indirectly as a consequence of, or otherwise in connection with, the realisation by another person of an asset (“the other asset”),

b that company and that other person were related parties at the time of the realisation of the other asset, c the other asset was a pre-FA 2002 asset or a restricted asset in the hands of any company at any time during the period beginning with 1 July 2020 and ending with the time of the realisation mentioned in paragraph (a),

d the other asset was not the subject of a relieving acquisition at any time during the period beginning with 1 July 2020 and ending with the time of the realisation mentioned in paragraph (a),

and e the asset concerned has not been the subject of a relieving acquisition at any time after the realisation mentioned in paragraph (a).

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

a immediately before 1 July 2020 the other asset was held by a person that was not a company, b immediately before 1 July 2020 that person was a related party in relation to a company, and c the other asset would have been a pre-FA 2002 asset in the hands of that company on 1 July 2020 had that company acquired the asset from that person immediately before that date.

4 For the purposes of subsection (2) it does not matter whether—

a the other asset is the same as the asset concerned, b the asset concerned is acquired at the time of the realisation of the other asset, or c the asset concerned is acquired by merging assets or otherwise.