Corporation Tax Act 2009 section 899

Relief where degrouping charge on asset arises on or after 1 April 2002

Section 899 extends roll-over relief to situations where a degrouping charge arises on a pre-Finance Act 2002 intangible fixed asset, allowing the gain to be deferred when the proceeds are reinvested in a new intangible asset.

• When a company leaves a group and a degrouping charge arises on a pre-FA 2002 intangible asset on or after 1 April 2002, roll-over relief under Chapter 7 may be available to defer the resulting gain
• The old asset must have been a chargeable asset within the capital gains rules throughout the period it was held by the company that left the group
• The "amount available for relief" reduces both the deemed sale consideration for the old asset under the capital gains rules and the tax cost of the new replacement asset
• The restriction on roll-over relief for part realisations involving related parties does not apply when relief is claimed under this section