Taxation (International and Other Provisions) Act 2010 section 371SK

Intangible fixed assets

Section 371SK sets out the assumptions to be made when applying the intangible fixed assets rules to a controlled foreign company (CFC), particularly regarding the opening value of intangible assets and the treatment of rollover relief.

• When a company first becomes a CFC, any intangible fixed assets it already holds are treated as if they were acquired at the start of its first CFC accounting period, at their accounting book value at that date.
• This deemed acquisition date does not override the rule that Part 8 of the Corporation Tax Act 2009 only applies to intangible assets created or acquired on or after 1 April 2002.
• It must be assumed that the CFC has not claimed, and will not claim, rollover relief on the reinvestment of proceeds from intangible fixed assets.
• The assumption that rollover relief has not been claimed is subject to an exception where section 371SG(4) applies, which can disapply certain standard assumptions.