Part 8U.K.Intangible fixed assets

Chapter 14U.K.Miscellaneous provisions

Assets ceasing to be or becoming chargeable intangible assetsU.K.

859Asset ceasing to be chargeable intangible asset: deemed realisation at market valueU.K.

(1)If an asset ceases to be a chargeable intangible asset in relation to a company in any of the circumstances specified in subsection (2), this Part applies as if—

(a)immediately before the asset ceased to be a chargeable intangible asset in relation to the company, the company had realised the asset for its market value at that time, and

(b)the company had immediately reacquired it at that value.

(2)The circumstances are—

(a)that the company ceases to be UK resident,

(b)in the case of a company that is not UK resident, any circumstances not involving the realisation of the asset by the company, and

(c)that the asset begins to be held for the purposes of a mutual trade or business.

F1(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2860Asset ceasing to be chargeable intangible asset: postponement of gainU.K.

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F2861Treatment of postponed gain on subsequent realisationU.K.

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F2862Treatment of postponed gain in other casesU.K.

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863Asset becoming chargeable intangible assetU.K.

(1)This section applies if an asset becomes a chargeable intangible asset in relation to a company—

(a)on the company becoming UK resident,

(b)in the case of a company that is not UK resident, on the asset beginning to be held[F3—

(i)]for the purposes of a trade carried on by the company in the United Kingdom through a permanent establishment,

[F4(ii)for the purposes of a trade carried on by the company of dealing in or developing UK land,

(iii)for the purposes of a UK property business carried on by the company, or

(iv)for the purposes of enabling the company to generate other UK property income (within the meaning given by section 5(6)),] or

(c)on the asset ceasing to be held for the purposes of a mutual trade or business.

(2)This Part applies as if—

(a)the company had acquired the asset immediately after it became a chargeable intangible asset in relation to the company, and

(b)had done so for its accounting value at that time.

[F5(3)But subsection (2)(b) is subject to section 863A.]

[F6863AAsset becoming chargeable intangible asset: EU exit chargeU.K.

(1)This section applies if—

(a)an asset becomes a chargeable intangible asset in relation to a company by reason of an event specified in section 863(1)(a) or (b), and

(b)on the occurrence of that event the company becomes subject to an EU exit charge in respect of the asset.

(2)This Part applies as if the company had acquired the asset for its market value at the time it became a chargeable intangible asset in relation to the company.

(3)“EU exit charge” means a charge to tax under the law of a member State in accordance with Article 5(1) of Directive (EU) 2016/1164 of the European Parliament and of the Council of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market.]