Corporation Tax Act 2009 section 893

Assets whose value derives from pre-FA 2002 assets

Section 893 deals with intangible fixed assets acquired between related parties during the period 1 April 2002 to 30 June 2020, where the acquired asset derives its value in whole or in part from an older asset that has preserved status, and explains how such assets are treated outside the intangible fixed assets regime to the extent of that derived value.

• Where a company acquires an intangible fixed asset from a related party between 1 April 2002 and 30 June 2020, and that asset was created on or after 1 April 2002 but derives value from an older asset with preserved status, special rules apply
• To the extent the acquired asset's value derives from the older preserved-status asset, it is treated as a pre-FA 2002 asset and falls outside the intangible fixed assets regime in Part 8 of the Corporation Tax Act 2009
• Where only part of the value derives from the older asset, the acquired asset is split: the part not derived from the older asset follows the intangible fixed assets rules, while the derived part follows the alternative tax rules that apply to pre-FA 2002 assets
• Value is treated as derived from another asset broadly, including where assets have been merged, divided, changed their nature, or where rights or interests in assets have been created or extinguished