Corporation Tax Act 2009 section 900D

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

Section 900D describes the third scenario in which an intangible fixed asset acquired on or after 1 July 2020 is treated as a restricted asset, specifically where it arises from or is connected with the realisation of another asset by a related party.

• An intangible fixed asset acquired on or after 1 July 2020 is restricted if it was acquired directly or indirectly as a consequence of, or in connection with, a related party's realisation of another asset that was itself a pre-Finance Act 2002 asset or a restricted asset at any time since 1 July 2020.
• The other asset must not have been the subject of a relieving acquisition at any time between 1 July 2020 and its realisation, and the newly acquired asset must not have been the subject of a relieving acquisition since the realisation.
• If the other asset was held by a non-corporate person before 1 July 2020 who was related to a company, the condition is still met provided the asset would have qualified as a pre-Finance Act 2002 asset had that related company acquired it immediately before 1 July 2020.
• The restriction applies regardless of whether the other asset and the acquired asset are the same, whether the acquisition happens at the time of realisation, or whether the asset is acquired through merging assets or by any other means.