Corporation Tax Act 2009 section 793A

Effect of election under section 792

Section 793A explains how a degrouping charge on an intangible fixed asset is treated when it has been reallocated from one group company (A) to another group company (B) by election, depending on the nature of B's UK activities.

• Where B is a UK-resident company, the reallocated gain (or elected part) is treated as a non-trading credit accruing to B at the relevant time.
• Where B is non-UK resident but trades in the UK through a permanent establishment, the gain is treated as a non-trading credit relating to an asset held for that permanent establishment.
• Where B is non-UK resident but carries on a trade of dealing in or developing UK land, the gain is treated as a credit relating to an asset held for that trade.
• Where B is non-UK resident but carries on a UK property business, the gain is treated as a credit relating to an asset held for that property business.