Corporation Tax Act 2009 section 777

Relief on realisation and reinvestment: application to group member

Section 777 allows group companies to be treated as the same company for the purposes of roll-over relief on the realisation and reinvestment of intangible assets, subject to certain conditions.

• Roll-over relief under Chapter 7 can apply across two group companies, where one company realises the old asset and another company in the same group acquires replacement intangible assets
• The relief does not apply where the replacement assets are acquired from another member of the same group by way of a tax-neutral transfer
• The acquiring company must not be a dual resident investing company at the time the expenditure is incurred, and the replacement assets must be chargeable intangible assets in relation to that company immediately after the expenditure
• Both the company disposing of the old asset and the company acquiring the replacement assets must jointly make a claim for the relief