Corporation Tax Act 2009 section 758

How the relief is given: general

Section 758 explains the mechanics of how roll-over relief is calculated and applied when a company reinvests the proceeds from realising an intangible fixed asset into other qualifying intangible assets.

• Roll-over relief works by reducing both the proceeds of the old asset and the tax cost of the new assets by the amount of relief available.
• If the company reinvests all or more than the proceeds, the relief equals the gain (proceeds minus cost of the old asset); if it reinvests less than the full proceeds, the relief is limited to the reinvested amount minus the cost of the old asset.
• The cost of the old asset means its total capitalised expenditure recognised for tax purposes, with proportionate or adjusted figures used where the old asset was only partly realised or had been subject to a previous part realisation.
• The relief only affects the company claiming it and has no impact on the tax treatment of any other party to the transactions involved.