Section 195F — Taxation of Chargeable Gains Act 1992: Reimbursed expenditure

Reimbursed expenditure 195F 1 This section applies if—

a expenditure is incurred by company A or company B (see section 195A) on a licence disposed of by it under a licence-consideration swap or mixed-consideration swap, b the expenditure is incurred before the disposal, c the expenditure falls within section 38(1)(b),

and d the expenditure is reimbursed or effectively reimbursed (whether by way of adjustment of the non-licence consideration (if any) or otherwise) by the company (“ the other company ”) to whom the disposal is made (whether before, on or after the date of the disposal).

2 The expenditure is to be treated for the purposes of this Act as expenditure —

a incurred by the other company on the licence immediately after the disposal, and b which falls within section 38(1)(b).