Corporation Tax Act 2009 section 900B

When an intangible fixed asset is a restricted asset: the first case

Section 900B defines the first set of circumstances in which an intangible fixed asset is treated as a "restricted asset", limiting the tax relief available to the acquiring company.

• An intangible fixed asset acquired from a related party on or after 1 July 2020 may be a restricted asset, meaning the company's ability to claim tax deductions for it is limited
• The asset is restricted if it was a pre-Finance Act 2002 asset held by any company on 1 July 2020, or was created before 1 April 2002 and held by a non-company person immediately before that date, provided there has been no relieving acquisition since
• An exception applies where a non-company intermediary acquired the asset on or after 1 April 2002 from an unrelated third party who was also unrelated to the companies in the chain at the relevant times
• The rules are designed to prevent groups from bringing old intangible assets into the corporation tax intangibles regime through related party transfers to gain tax relief that would not otherwise be available