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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 created on or after 1 April 2002

CTA09/PART8/S882 (5)

FA02 rule

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

An asset ‘acquired on or after 1 April 2002’ (see CIRD11670 and CIRD11690) from a ‘related party’ (see CIRD45105 onwards) satisfies the general conditions if it was ‘created on or after that date’ (by anybody) for the purposes of CTA09/PART8.

The rules outlined in CIRD11665 onwards apply in determining when an asset was created.

Where, in accordance with those rules, an asset was partly created before and partly on or after 1 April 2002 it is deemed to be two separate assets and an apportionment of the expenditure will be necessary (as described in CIRD11670) unless the asset also satisfies one or other of the first two qualifying conditions outlined in CIRD11625.

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