Corporation Tax Act 2009 section 861

Treatment of postponed gain on subsequent realisation

Section 861 dealt with how a previously postponed intangible fixed asset gain was brought back into charge when the asset was subsequently realised, but this provision has been repealed for companies ceasing UK residence on or after 1 January 2020.

• When a company had postponed a gain on an intangible fixed asset under section 859 (typically on ceasing to be UK resident), section 861 governed how that postponed gain was treated if the asset was later realised — for example, through a sale or disposal.
• On a subsequent realisation of the asset, the postponed gain would be brought into account for corporation tax purposes, ensuring the gain was not permanently avoided but merely deferred.
• Sections 860 to 862, which together formed a package of rules around exit charges on intangible fixed assets, were repealed by Finance Act 2019, section 23 and Schedule 8, paragraph 10(1).
• The repeal applies where a company ceases to be resident in the United Kingdom on or after 1 January 2020; the old rules continue to apply to companies that ceased UK residence before that date.