Corporation Tax Act 2009 section 900M

Acquisition of fungible assets: pre-FA 2002 assets and restricted assets

Section 900M sets out how newly acquired fungible intangible assets can inherit the status of pre-Finance Act 2002 assets or restricted assets when they replace similar assets that the company has recently disposed of.

• When a company acquires fungible assets and disposes of pre-FA 2002 or restricted assets of the same kind within a 61-day window (30 days before to 30 days after the acquisition), the newly acquired assets take on the status of the disposed assets.
• Assets that would not otherwise be pre-FA 2002 assets are treated as such to the extent they match pre-FA 2002 assets disposed of within that window; similarly, assets that would not otherwise be restricted assets are treated as restricted assets to the extent they match restricted assets disposed of.
• Assets of "the same kind" means assets that are, or would be, treated as part of the same single fungible asset pool under the fungible assets rules.
• Where matching is needed, disposals made earlier take priority over later disposals, and acquisitions made earlier take priority over later acquisitions.