Corporation Tax Act 2009 section 755

Conditions relating to the old asset and its realisation

Section 755 sets out the conditions that must be satisfied in relation to the old (replaced) intangible fixed asset and the proceeds from its disposal in order for roll-over relief to apply.

• The old asset must have been a chargeable intangible asset throughout (or for a substantial part of) the period the company held it, and the proceeds of realisation must exceed its capitalised cost recognised for tax purposes
• Where the asset has no recognised cost for tax purposes — for example, internally-generated goodwill — the proceeds condition is automatically treated as met
• For a part realisation, the test compares proceeds against the appropriate proportion of cost; where a previous part realisation has already occurred, the adjusted cost figure is used instead
• Where the asset was chargeable for only a substantial proportion (but not all) of the holding period, a just and reasonable apportionment is made so that only the qualifying portion is treated as a separate asset eligible for relief