Corporation Tax Act 2009 section 894

The preserved status conditions etc

Section 894 defines the "preserved status conditions" that must be met for an asset whose value derives from a pre-Finance Act 2002 asset to retain its excluded status from the intangible fixed assets regime.

• The underlying asset must have been a pre-FA 2002 asset held by the transferor (when related to the acquiring company) or by another person who was related to either the acquiring company or the transferor, at any time on or after 1 April 2002.
• The underlying asset must not have been treated as a chargeable intangible asset in the hands of the acquiring company, any related party, or the transferor at any time on or after 5 December 2005.
• It does not matter who created the newly acquired asset — the preserved status conditions focus solely on the history and treatment of the underlying asset from which value is derived.
• Where the value of the acquired asset only partly derives from the underlying pre-FA 2002 asset, any necessary apportionment must be made on a just and reasonable basis.