Core computational rules: realisation of assets: asset deemed to be realised while remaining in hands of company
This paragraph identifies three circumstances where an asset ceases to be a ‘chargeable intangible asset’ (see CIRD20035) in the hands of a company while remaining in its possession. These are:
- a company holding a chargeable intangible asset ceases to be resident in the UK - CIRD47030
- a chargeable intangible asset held by a non-resident company ceases to be used in its UK trade carried on through a permanent establishment in the UK - CIRD47030
- a chargeable intangible asset held for the purpose of a non-mutual trade or business begins to be used for a mutual trade (see below)
Treatment of asset beginning to be used for mutual trade
For the purposes of Part 8 the company is regarded as:
- realising the asset and reacquiring it immediately before it begins to be used for the mutual trade,
- doing so for its market value (CIRD45030) at the time.
See CIRD12745 for the treatment under Part 8 where an asset ceases to be used for a mutual trade.