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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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Corporation Tax: change of ownership: companies with investment business: chargeable gain on disposal of asset acquired from another member of the group


Section 692 applies where:

  • there is a change in ownership of an investment company or for periods starting on or after 1 April 2004 a company with investment business,
  • there has been no significant increase in capital , no major change in the nature or conduct of the business and no revival after the scale of activities had become small or negligible (so CTA2010/S677 does not apply),


  • the company subsequently acquires an asset from another member of the same group so that the no gain/no loss basis provided for in TCGA92/S171 (1) applies, and
  • the company realises a chargeable gain (a relevant gain) on its disposal of the asset (or another asset which derives its value from the transferred asset) within three years of the change in ownership.


  • the company acquires goodwill or an intangible fixed asset under ‘tax neutral’ terms under CTA2009/S775, and
  • there is a subsequent disposal of that asset giving rise to a non-trading credit (see CIRD48050).

For the purposes of Section 692 an asset which is disposed of is to be regarded as the same asset as one acquired earlier from another member of the group where its value is derived in whole or in part from that asset. In particular, this applies where the asset acquired was leasehold and the lessee, having acquired the reversion, disposes of the freehold.