Corporation Tax Act 2009 section 892

Certain assets acquired on transfer of business or transfer within a group

Section 892 ensures that when a pre-FA 2002 intangible asset is transferred between companies on a no gain/no loss basis under specified capital gains provisions, the asset retains its pre-FA 2002 status in the hands of the receiving company, keeping it outside the intangible fixed assets regime.

• When a company transfers a pre-FA 2002 intangible asset to another company on a no gain/no loss basis under certain capital gains provisions (business reconstructions, UK business transfers or divisions, mergers, or intra-group transfers), the asset keeps its pre-FA 2002 status in the receiving company's hands.
• Without this rule, the receiving company could claim relief under the intangible fixed assets regime based on the asset's fair value in its accounts, even though the transferring company was never taxed on any corresponding gain — creating an asymmetry between the two parties' tax treatment.
• By preserving the asset's pre-FA 2002 classification, the section ensures that the asset remains within the capital gains rules for the receiving company, with an acquisition cost equal to the transferring company's disposal value.
• The rule applies to transfers occurring on or after 28 June 2002; however, intra-group transfers under section 171 of TCGA 1992 are only covered for transfers on or after 1 July 2020.