Commentary

D1.641 Intangible assets rollover relief—transitional provisions

Corporate tax
Corporate tax | Commentary

D1.641 Intangible assets rollover relief—transitional provisions

Corporate tax | Commentary

D1.641 Intangible assets rollover relief—transitional provisions

Disposal of or degrouping charges in respect of pre-FA 2002 asset

Where a pre-FA 2002 asset (ie an intangible fixed asset outside the scope of the corporate intangible regime, see D1.608) is disposed of, or is the subject of a degrouping charge which is deemed to arise, after 31 March 2002, the gain on disposal of the asset is dealt with under the capital gains regime (see Division C1.1), and not under the corporate intangible regime rules.

However, for rollover relief purposes, a gain on disposal, or degrouping charge, after 1 April 2002 of a pre-FA 2002 asset is rolled over in accordance with the rules in the corporate intangible regime (see D1.635, D1.638), rather than under the capital gains rollover rules1 (see Division C3.3). Disposal in this context has its normal meaning for capital gains purposes2. Capital gains rollover relief generally ceases to be available for intangible fixed assets that are disposed of, or deemed to be disposed of, after 1 April 20023, subject to the transitional exception described below.

The rule

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