Section 357OL — Corporation Tax Act 2010: Realisation and acquisition of fungible assets

Realisation and acquisition of fungible assets 357OL 1 Subsection (2) applies if—

a a company realises a fungible asset, and b apart from section 357OK(2), the asset would be treated as part of a single asset comprising both pre-commencement assets and assets that are not pre-commencement assets.

2 The realisation is treated as diminishing the single asset of the company comprising pre-commencement assets in priority to diminishing the single asset of the company comprising assets that are not pre-commencement assets.

3 Fungible assets acquired by a company that would not otherwise be treated as pre-commencement assets are so treated so far as they are identified, in accordance with the following rules, with pre-commencement assets realised by the company.

4 Rule 1 is that assets acquired are identified with pre-commencement assets of the same kind realised by the company within the period beginning 30 days before and ending 30 days after the date of the acquisition.

5 The reference in subsection (4) to assets “of the same kind” is to assets that are, or but for section 357OK(2) would be, treated as part of a single asset because of section 858 of CTA 2009.

6 Rule 2 is that assets realised earlier are identified before assets realised later.

7 Rule 3 is that assets acquired earlier are identified before assets acquired later.

8 In this section— “ fungible asset ” means an intangible fixed asset to which section 858 of CTA 2009 applies; “ realisation ”, in relation to a fungible asset, has the same meaning as in Part 8 of CTA 2009 (see sections 734 and 856 of that Act).