Corporation Tax Act 2009 section 900C

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

Section 900C identifies a second scenario in which an intangible fixed asset is treated as a restricted asset, focusing on newly created assets acquired from related parties whose value derives from older restricted or pre-Finance Act 2002 assets.

• An intangible fixed asset acquired from a related party on or after 1 July 2020 may be a restricted asset if it was itself created on or after that date and has never been the subject of a relieving acquisition.
• The asset is restricted where its value derives, in whole or in part, from another asset that was a pre-Finance Act 2002 asset or a restricted asset in the hands of any company on the date the new asset was created.
• If the other asset was held by a non-corporate person who was a related party of a company, and that other asset would have been a pre-Finance Act 2002 asset or restricted asset had the company acquired it, the restriction still applies.
• Value is treated as derived from another asset broadly, including where assets have been merged, divided, changed in nature, or where rights or interests in assets have been created or extinguished.