Corporation Tax Act 2009 section 859

Asset ceasing to be chargeable intangible asset: deemed realisation at market value

Section 859 deals with what happens when an intangible asset stops being a chargeable intangible asset for corporation tax purposes, triggering a deemed sale and repurchase at market value.

• When an intangible asset ceases to be a chargeable intangible asset, the company is treated as having sold and immediately reacquired it at market value
• This deemed disposal is triggered if the company ceases to be UK resident
• It also applies where a non-UK resident company's asset loses its chargeable status through circumstances other than an actual sale
• The rule further applies where the asset begins to be held for the purposes of a mutual trade or business