CIRD11520 - Intangible assets within CTA09/PART8: FA02 rule: general conditions: outline
An asset held by a company satisfies the general conditions of the FA02 rule if any of the following apply:
- it is ‘created by the company on or after 1 April 2002’ (see CIRD11600)
- it is ‘acquired by the company on or after 1 April 2002’ from a person who is not at that time a ‘related party’ (see CIRD11610)
- it is acquired by the company on or after 1 April 2002 from a related party in defined circumstances (see CIRD11625)
Where the company acquired the asset (rather than created the asset itself) the asset must not have been transferred to the company in circumstances where the transferor is treated as disposing of the asset for CG purposes on no gain/no loss terms under TCGA92/S139 or TCGA92/S140A (see CG52800 onwards and CG45706 onwards). See CIRD11660.
The terms ‘created on or after 1 April 2002’ and ‘acquired on or after that date’ have specific meanings for the purposes of applying the FA02 rule - it is not sufficient for an asset to be created or acquired in the ordinary legal sense of the word. An asset is only treated as created or acquired on or after 1 April 2002, for the purposes of Part 8, if and when expenditure is incurred on the creation or acquisition of the asset on or after 1 April 2002 (see CIRD11670 to CIRD11690).