Corporation Tax Act 2009 section 754

The relief: the "old asset" and "other assets"

Section 754 introduces roll-over relief that allows a company to defer some or all of the taxable credit arising when it realises an intangible fixed asset, provided it reinvests in other intangible fixed assets.

• When a company sells or otherwise realises an intangible fixed asset (the "old asset") and spends the proceeds on acquiring other intangible fixed assets ("other assets"), it may be able to defer the taxable gain through roll-over relief.
• To qualify, the company must satisfy conditions relating to the old asset and how it was realised, conditions relating to the expenditure on the replacement assets, and must make a formal claim for the relief.
• The basic rules in this chapter cover straightforward cases where a single company replaces intangible assets already within the intangible fixed assets regime with new assets that also fall within the regime, acquired at arm's length.
• Additional rules apply in more complex situations, including reinvestment by group companies, degrouping charges, reallocated charges, part realisations involving related parties, and disposals of intangible assets that pre-date the intangible fixed assets regime (pre-April 2002 assets).