Corporation Tax Act 2009 section 788

Provisions supplementing sections 780 to 787

Section 788 provides supplementary interpretative rules that apply to the degrouping charge provisions in sections 780 to 787 concerning intangible fixed assets.

• A company does not trigger a degrouping charge merely because it leaves a group as a result of another group member ceasing to exist
• An asset acquired by a company is treated as the same asset if a later asset owned by that company or an associated company derives its value wholly or partly from the original asset
• Two companies are associated if one is a 75% subsidiary of the other, or both are 75% subsidiaries of the same third company
• These rules ensure the degrouping provisions operate fairly where groups restructure or where assets are transformed into different forms