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HMRC internal manual

Corporate Intangibles Research and Development Manual

Intangible assets within CTA09/PART8: FA02 rule: asset acquired on or after 1 April 2002 from a related party in qualifying circumstances: asset acquired by a related party from an independent third party

CTA09/PART8/S882 (4)

FA02 rule

This is the second of the three qualifying circumstances outlined in CIRD11625.

All three of the following conditions must be satisfied:

  • The ‘related party’ (B), from whom the company in question (A) acquired the asset, itself ‘acquired the asset on or after 1 April 2002’ from another person (C);
  • C is not a related party of A at the time of the acquisition of the asset by A; and
  • If either B or C (or both) is a company, then one must not be a related party of the other at the time B acquired the asset from C.

Where, exceptionally, the CG rules apply to the disposal of the asset by B, the asset may remain outside CTA09/PART8 if it falls within the rule described in CIRD11660.

See CIRD45105 onwards for the meaning of ‘related party’.

See CIRD11670 and CIRD11690 for the meaning of ‘acquired on or after 1 April 2002’.