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HMRC internal manual

Corporate Intangibles Research and Development Manual

Reinvestment relief: groups of companies: relief against taxable credit on degrouping


The rule that reinvestment relief cannot reduce a taxable credit arising on the deemed realisation of chargeable intangible assets (see CIRD20070) is subject to an exception where the taxable credit arises as a result of the deemed realisation and reacquisition of an asset under the degrouping rules (see CIRD40500 onwards).

To make such relief possible, S791 adapts the general reinvestment relief rules as follows:

  • the requirement that the old asset must be a ‘chargeable intangible asset’ of the company realising it (see CIRD20035) applies instead to the company from which it acquired the asset,
  • the time limits for reinvestment (see CIRD20110) run from the date of the event which triggers the degrouping adjustment (see CIRD40520 and CIRD40540), not from the date of the transfer of the old asset,
  • the proceeds of realisation (CIRD20060) are the market value of the asset on its deemed realisation by the transferee under the degrouping rules.


The reacquisition cost of the asset following its deemed realisation is not affected by the reduction of the proceeds as a result of reinvestment relief.

This provision corresponds broadly to the rule allowing CG on degrouping to be rolled over(see CG45418).

See also:

  • CIRD20470 - reinvestment relief where taxable credit on degrouping reallocated to another company.
  • CIRD20480 - reinvestment relief where CG degrouping rules apply (to goodwill or an intangible asset outside Schedule 29 by virtue of being an existing asset).