Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Corporate Intangibles Research and Development Manual

HM Revenue & Customs
, see all updates

Reinvestment relief: general matters and conditions to be satisfied: by asset realised: chargeable intangible asset requirement: telecommunications assets and Lloyd's syndicate capacity

FA02/SCH29/PARA128 (3) and 129 (4)


As explained in CIRD11740 and CIRD11750, the time test (which partly determines whether an intangible asset comes within Schedule29 - see CIRD11500) is relaxed for:

  • syndicate capacity enabling a company to write insurance business at Lloyd’s, and
  • telecommunications rights and licences within FA00/SCH23.

These assets come within Schedule 29 even though they may have been acquired prior to acompany’s first accounting period to which the rules in Schedule 29 apply.

The combination of this relaxation, and the requirement for reinvestment relief that the asset realised must have been a chargeable intangible asset throughout the periodit it was held (see CIRD20035), would have inhibited reinvestment relief on the realisation of assets of this kind acquired prior to the first accounting period mentioned above.

This is because an asset is only a chargeable intangible asset at a particular time if a gain on its disposal would create a taxable credit within Part 4 of Schedule 29 (see CIRD20035). But no such taxable credit would arise on a hypothetical realisation prior tothe first accounting period for which the rules in Schedule 29 apply.

So, without special provision, reinvestment relief would either be unavailable or would be restricted in the way described in CIRD20035, in spite of the fact that gains on the disposal of these assets would have been taxed as income under the legislation which Schedule 29 supersedes.

Legislative provision

To avoid this consequence, Schedule 29 provides that syndicate capacity and licences orrights within FA00/SCH23, acquired prior to the first accounting period of a company forwhich the rules in Schedule 29 apply to that company, are to be regarded as‘chargeable intangible assets’ from acquisition to the beginning of that accounting period. See also CIRD70710.