Corporation Tax Act 2009 section 900I

Acquisition of asset in pursuance of an unconditional obligation

Section 900I determines the date on which a company is treated as having acquired an intangible fixed asset where the acquisition arises from an unconditional obligation under a contract.

• Where a company acquires an intangible fixed asset under an unconditional contractual obligation, the acquisition date is brought forward to the earlier date when the obligation arose or became unconditional.
• The deemed acquisition date is the date the company first became subject to the obligation, or if later, the date on which that obligation became unconditional.
• An obligation counts as unconditional if it cannot be varied or extinguished by the exercise of any right, whether contractual or otherwise.
• This rule can affect which tax regime applies to the asset, since the relevant date for determining tax treatment is the deemed acquisition date rather than the date of actual transfer.