Corporation Tax Act 2010 section 602

Effect of deemed disposal and reacquisition

Section 602 establishes that a deemed disposal and reacquisition of an asset under this Part carries forward and must be taken into account for any future disposal of that asset.

• Where an asset is treated as having been disposed of and reacquired under this Part, that deemed event has lasting consequences
• The deemed disposal and reacquisition must be factored into the calculation of any subsequent disposal of the same asset
• This applies regardless of whether the subsequent disposal is an actual disposal or itself a deemed disposal
• The effect is to reset the base cost or other relevant values of the asset at the point of the deemed disposal and reacquisition