Corporation Tax Act 2009 section 763

Disregard of deemed realisations and reacquisitions

Section 763 establishes that the reinvestment relief rules in Chapter 7 generally do not apply to notional (deemed) realisations and reacquisitions of intangible fixed assets, with two specific exceptions.

• Reinvestment relief under Chapter 7 only applies to actual realisations of intangible fixed assets, not to deemed or notional ones
• There are two exceptions: where roll-over relief applies in connection with a degrouping charge (section 791) or a reallocated charge (section 794)
• Any reacquisition of an asset that is merely deemed to occur (rather than actually taking place) is completely ignored for the purposes of Chapter 7
• The effect is to confine reinvestment relief to genuine commercial transactions, except in specified group restructuring situations